Clearance of Electrical Goods using Wrong Assessee code: CESTAT quashes Excise Duty Demand on ground of Small inadvertent Mistake [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the excise duty demand on clearance of electrical goods using the wrong assessee code on the ground of small inadvertent mistakes. 

Vidyut Corporation, the appellant assessee obtained new registration, and the new unit opened at Survey No. 482/15 Daman and started business of the same electrical goods as so done in the first survey and the assessee inadvertently paid the duty on clearances of the goods under assesse code. 

The assessee appealed against the order passed by the Adjudicating Authority for confirming the demand interest and also imposed a penalty of Rs. 50 Lacs under Rule 25 of the Central Excise Rules, 2002. 

B. K Singh and Vandana Singh, the counsels for the assessee contended that in any case even show cause notice ought not to have been issued as it was admitted fact that the assessee had deposited the demand even though under the wrong registration number which was otherwise surrendered and the same was accepted by the department and for the small inadvertent mistake the duty cannot be demanded twice. 

Anoop Kumar Mudvel, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was liable to pay the demand raised by the revenue and the demand was as per the law and liable to be sustained. 

The Bench observed that in the case of Sahara India TV, the court held that in the absence of any malafide when the mistake was brought to the department by the assessee, there had not been any short or delayed payment of service tax and directed the revenue to rectify the mistake and set aside penalty and interest. 

The two-member bench comprising Ramesh Nair (Judicial) and C L Mahar (Technical) held that the demand of duty which was already paid and corresponding interest and penalties were not sustainable and quashed the excise duty demand against the assessee. 

To Read the full text of the Order CLICK HERE

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