CESTAT quashes Excise Duty Demand on Clearance of Coals from Transferor Unit on ground of Limitation [Read Order]

The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the Central Excise Duty demand on the clearance of coal from the transferor unit on the ground of limitation. 

Mahanadi Coalfields Limited, the appellant assessee is engaged in the business of production and selling of coal and their coal mines located in the State of Odisha and the assessee had ten units generally referred to as area offices. 

The assessee appealed against the order passed by the adjudicating authority for confirming the demand of Central Excise Duty and Clean Energy Cess proposed for the period March 2011 to March 2015. 

Rajeev Agarwal and S. Dixit, the counsels for the assessee contended that the period involved in the year 2011- 2015 and the show-cause notice had been issued on 19.04.2016 which had been received by the assessee on 28.04.2016 was beyond the period of limitation. Therefore, due to the limitation of time, the show-cause notice failed. 

S. Chhattopadhyay, the counsel for the department relied on the decisions made by the lower authorities and contended that the excise duty demand raised by the revenue was as per the law and liable to be sustained. 

The Bench observed that on merit the assessee was liable to pay duty, but on limitation, the show-cause notice failed. Accordingly, the demand confirmed in the order was not sustainable. 

The two-member bench comprising Muralidhar (Judicial) and Anpazhakan (Technical) quashed the excise duty demand while allowing the appeal filed by the assessee. 

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates