CESTAT Upholds Order of Dropping Demand of CENVAT Duty from assessee on ground of Genuine Disclosure of Input-Output Ratio [Read Order]
![CESTAT Upholds Order of Dropping Demand of CENVAT Duty from assessee on ground of Genuine Disclosure of Input-Output Ratio [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/07/CESTAT-Dropping-Demand-CENVAT-Duty-assessee-ground-Genuine-Disclosure-Input-Output-Ratio-TAXSCAN.jpg "CESTAT Upholds Order of Dropping Demand of CENVAT Duty from assessee on ground of Genuine Disclosure of Input-Output Ratio [Read Order]")
The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) upheld the order of dropping the demand of CENVAT duty from the assessee on the ground of the genuine disclosure of the input-output ratio. Jai Balaji Industries Limited, the appellant assessee appealing against the penalty imposed by the adjudicating authority on the ground of excessive...
The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) upheld the order of dropping the demand of CENVAT duty from the assessee on the ground of the genuine disclosure of the input-output ratio.
Jai Balaji Industries Limited, the appellant assessee appealing against the penalty imposed by the adjudicating authority on the ground of excessive input-output ratio and clandestine removal of goods.
K.K.Anand and S.K.Mohapatra, the counsels for the assessee contended that the the demand of duty was confirmed on account of clearance of melting scrap in the absence of any evidence of clearing the same on payment of duty, therefore, the demand was not being contested by the assessee.
It was further submitted that the demand had been raised against the assessee based on assumption and presumption and the shortages were also found of negligible quantity of finished goods.
J.Chattopadhyay, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the physical verification of the stock was done in the presence of the officers of the assessee, who admitted the shortage of finished goods while doing physical verification and same was not objected by the managing director of the assessee’s company.
The bench observed that the adjudicating authority has rightly dropped the demand based on the input-output ratio and no penalty was imposable on the assesse.
The two-member panel comprising Ashok Jindal (Judicial) And K. Anpazhakan (Technical) upheld the order of dropping the demand of duty from the assessee by the adjudicating authority.
Payment of Interest does not Arise in Revenue Neutral Situation, no Duty to be Paid: CESTAT
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M/s. Jai Balaji Industries Limited vs Commissioner of Central Excise , 2023 TAXSCAN (CESTAT) 748 , Shri K.K.Anand & Shri S.K.Mohapatra , Shri J.Chattopadhyay