CESTAT confirms Central Excise Duty demand on Clean Energy Cess under in absence of any law showing Exemption from Payment [Read Order]

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed the central excise duty demand on clean energy cess under in the absence of any law showing exemption from payment.

M/s New India Engineering Works, filed the appeal to assail the order-in-appealpassed by the Commissioner (Appeals), Central Goods & Service Tax and Central Excise, whereby the appeal was partly allowed.

A show cause noticewas issued to the appellant demanding central excise duty of Rs. 5 lakhs (including excise duty, education cess, Secondary and Higher Education cess and clean energy cess) invoking extended period of limitation under section 11A (4) of the Central Excise Act, 1944 along with interest under section 11AAof the Central Excise Act, 1944.

A penalty of equal amount was proposed to be imposed under section 11AC of the Central Excise Act for contravening provision of Rules 4,6,8,9,10,11 and 12 of the Central Excise Rules, 2002 with an intent to evade payment of duty. The goods valued which were seized during investigation were also proposed to be confiscated under Rule 25  and the penalty was proposed to be imposed under Rule 25of the Central Excise Rules, 2002.

The Tribunal of Justice Dilip Gupta, President and PV Subba Rao, Technical Member observed that “We find that the clean energy cess was chargeable along with the education cess and higher education cess along with the excise duty. The appellant has not produced any law under which it was exempted from payment of clean energy cess.”

“Therefore, this ground cannot be accepted. The appellant contested the demand of interest. Payment of interest is mandatory under section 11AA of the Central Excise Act, 1944 and, therefore, the same cannot be set aside.”

To Read the full text of the Order CLICK HERE

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