The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication for imposing excise duty demand on clearance of wool and polyester without examination of relevant documents submitted by the assessee.
Global Wool Alliance Private Ltd, the appellant assessee was a manufacturer of several articles of ‘wool’ and ‘polyester’ and had been availing CENVAT credit of duty paid on several inputs deployed in production and had, at the same time been clearing export goods on payment of duty under the rebate procedure while availing the benefit of exemption provided for in notification.
The assessee appealed against the order passed by the Commissioner of Central Excise (Appeals) for refusing the application for a refund and for confirming the excise duty demand imposed on the assessee. Padmavati Patil, the counsel for the assessee contended that the revenue had not verified all the documents submitted by the assessee. Also submitted that the demand raised by the department was not as per the law and liable to be deleted. P.K Acharya, the counsel for the department relied on the decisions made by the lower authorities.
The Bench observed that the adjudicating authority had to verify all the aspects and documents which was submitted by the assessee before raising the demand.
The two-member bench comprising Ajay Sharma (Judicial) and C J Mathew (Technical) directed re-adjudication for the excise duty demand against the assessee.
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