Modification of Excise Duty demand can’t be denied In absence of Appeal against Tribunal's order to Extend the cum-tax benefit: CESTAT [Read Order]

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) of Chennai Bench has held that modification of excise duty demand can’t be denied in the absence of appeal against Tribunal's order to extend the cum-tax benefit.

The matter was remanded by the Tribunal vide Final Order No. 1887/2001 dated 06.11.2001 for de novo consideration and with a specific direction to extend cum duty benefit to the appellant. In de novo proceedings, the Commissioner passed the impugned order dated 21.11.2012 confirming the duty demand of Rs.4,66,796.14/- and imposed penalties.

It was submitted by the appellant that though the Tribunal had, in the first round of litigation, given a specific direction to extend the cum-duty benefit to the appellant, the Commissioner has denied the same in the de novo proceedings. The Commissioner has held that the appellant, having cleared the goods by way of a parallel set of invoices, without payment of duty, is not entitled to the benefit of the cumduty value.

The Bench had directed the Department to verify the details of the calculation of demand stated in the appeal memorandum after taking into account the cum-duty value as furnished by the appellant.

A Coram comprising of Ms Sulekha Beevi C S, Member (Judicial) and Mr Vasa Seshagiri Rao, Member (Technical) observed that when the Tribunal had given a specific direction to extend the cum-duty benefit to the appellant, the Adjudicating Authority ought to have calculated the demand after granting the benefit.

Further stated that if the Department has not filed any appeal against the order passed by the Tribunal dated 06.11.2001 directing to extend the cum-tax benefit, the Commissioner cannot deny the benefit stating that the appellant is not entitled to a modification of the demand as they have issued a parallel set of invoices.

The Tribunal held that “the impugned order is modified to the extent of reducing the demand of Rs.4,66,796.14/- to Rs.3,69,606/- without disturbing the amounts paid or penalties thereon.”

To Read the full text of the Order CLICK HERE

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