Jute Cess Payable only when Goods are Removed from Factory: CESTAT quashes Excise Duty Demand [Read Order]
Jute Cess Payable only when Goods are Removed from Factory – Jute Cess – Factory – CESTAT – Excise Duty Demand – CESTAT quashes Excise Duty Demand – Taxscan
Jute Cess Payable only when Goods are Removed from Factory – Jute Cess – Factory – CESTAT – Excise Duty Demand – CESTAT quashes Excise Duty Demand – Taxscan
In a recent case, the Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Jute Cess is payable only when goods are removed from the factory and quashed the excise duty demand.
M/s.AI Champdany Industries Limited, the Appellant challenged the impugned order dated 01/12/2010 passed by Commissioner (Appeals). The Commissioner (Appeals) has categorically stated that Jute Cess will be payable only when the goods are removed from the factory and hence the demands made in all three Orders are not sustainable.
The Commissioner set aside the Orders-in-Original passed by the Adjudicating authority and observed that the demands in respect of two cases were barred by limitation.
The Appellants challenged the remark of the Appellate Authority saying that the matter should not be taken up by the lower authority for decision afresh till remission applications are finally disposed of by the Commissioner and communicated to the Appellant.
It was submitted that the remark was a hypothetical situation which has not arisen so far, even after the passing of 13 years from the impugned order. The status of the remission application filed by the Appellant before the respective authority is not known. It appeared that no action is possible at this stage against the remission applications, even if they are pending.
A two-member bench comprising Shri P K Choudhary, (Judicial) and Shri K. Anpazhakan, (Technical) observed that all the demands made against the Appellant are already set aside and became final as no appeal has been filed by the department against the impugned order.
The CESTAT held that “there is no further direction warranted in these appeals as the decision of the Commissioner (Appeals) in the impugned order has already attained finality. The Appeals filed by the Appellant are disposed of with the above observations.”
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
