The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication to the adjudicating authority for computation of excise duty demand of approximately 6.7 crores on clearance of sheet glass to Domestic Tariff Ares (DTA) on the ground of absence of document analysis.
Haryana Steet Glass Limited, the appellant assessee being 100% Export Oriented Unit and engaged in the manufacture of sheet glass and the assessee m requested clearance to finished goods/ rejects to DTA, the request was accepted and permission was granted for clearance of the goods to DTA and various goods were, therefore cleared to DTA under permission of the Development Commissioner on payment of appropriate duty.
The assessee appealed against the order passed by the adjudicating authority to confirm the excise duty demand against the assessee.
Paritosh Gupta, the counsel for the assessee contended that to date the department had not provided the basis of quantification of the demand proposed in the show cause notice, and a very broad description against each amount was given from which it cannot be known the basis calculation of such demand.
Also submitted that no detail was provided either in the show cause notice or even thereafter despite repeated requests made by the assessee and the demand confirmed by the adjudicating authority was not sustainable.
R. Nathan, the counsel for the department relied on the decisions made by the lower authorities and contended that the demand raised by the department was as per the law and liable to be sustained.
The Bench observed that the matter needed to be reconsidered by the adjudicating authority by providing the necessary documents whereby the correct quantification of duty, if any can be ascertained.
The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) remanded the matter back to the adjudicating authority for re-adjudication for re-computation of duty demand against the assessee.
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