The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) abated the service tax appeal as per Rule 22 of CESTAT procedure rules,1982 on the grounds of non-filing of application by the liquidator.
Bharat NRE Coke Ltd, the appellant assessee was engaged in the manufacture of excisable goods i.e. Met Coke of various grades and Coking Coal, and was availing the benefit of CENVAT credit under CENVAT Credit Rules, 2004.
The assessee appealed against the order passed by the Commissioner (Appeals) for confirming the demand, interest, and penalty holding that in this case the sale had taken place at the time of delivery of goods to the transporter at the factory gate of the assessee and therefore the credit availed beyond factory gate was ineligible.
During the hearing of the appeal, none appeared on behalf of the assessee.
Dyamappa Airani, the counsel for the department contended that the CENVAT credit was not available from the place of removal to the place of delivery of the goods.
The Bench observed that the assessee was declared insolvent consequent to the proceedings under the Insolvency and Bankruptcy Code, 2016 and a liquidator had been appointed. Hence, a notice was sent to the liquidator intimating the adjourned date of hearing i.e., 08.09.2023. However, the liquidator had not attended the hearing nor sent any communication seeking adjournment.
Also observed that in the present case no such application had been filed by the liquidator for the continuance of the proceedings before this forum and hence the appeal stands abated by the operation of this rule.
A single-member bench comprising Pullela Nageswara Rao (Technical) held that where no application for continuance of the proceeding before this Tribunal was filed by the liquidator and the appeal abated as per Rule 22 of CESTAT Procedure Rules.
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