The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that as per Rule 22 of the CESTAT procedure rules,1982 any appeal can be abated with effect from the date of approval of the resolution plan passed by the National Company Law Tribunal (NCLT).
Applicomp India Ltd, the appellant assessee engaged in the manufacture of excisable goods falling under Chapters 84 and 85 of the Central Excise Tariff Act, 1985, and availed the CENVAT credit of Excise Duty,
The assessee appealed against the order passed by the Commissioner (Appeals) for confirming the recovery of wrongly availed CENVAT Credit of Rs. 1,60,34,422/- for the period from April 2008 to March 2010.
During the hearing of the appeal, none appeared on behalf of the assessee.
H. Jayathirtha, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was liable to reverse the CENVAT credit which was wrongly availed and the demand raised by the revenue was as per the law and liable to be sustained.
The Bench observed that in the case of Alok Industries Ltd’s case analyzed in detail Rule 22 of CESTAT (Procedure) Rules and the court observed that aforesaid Rule 22 should be applicable the moment the successor interest with sufficient rights was appointed by NCLT to make an application for continuation of the proceeding.
Also observed that the appeals filed can be abated as per Rule 22 of the CESTAT Procedure Rules with effect from the date of the approval of the resolution plan by the NCLT.
The two-member bench comprising D M Misra (Judicial) and Pullela Nageswara Rao (Technical) abated the appeal as per Rule 22 of CESTAT (Procedure) Rules.
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