The Orissa High Court Division Bench of Chief Justice S Muralidhar and Justice M S Raman has held in favour of Tata Iron & Steel that there is no scope for review by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on a matter already decided by it.
The Tata Iron & Steel Company Limited, Paradeep (Respondent in the present appeal) imported Low Silica Limestone (LSL) in bulk and being covered by Value-based Duty Exemption Entitlement Certificate and availed the benefit of exemption from payment of duty of customs as the said product was certified to contain Calcium Oxide (CaO) content of more than 53%.
On scrutiny, the Department alleged to have found less than 53% CaO, which in view of the Department, is not eligible for allowance of exemption under the DEEC Scheme. The Department having disputed with regard to claim of benefit under the aforesaid notification, sought to raise the demands. CESTAT, however, set aside the impugned order and remanded the matter to the Commissioner with regard to percentage of CaO in Low Silica Limestone, who in turn, nullified the impugned demands of customs duty.
The department preferred another appeal against the said nullification which was dismissed by the CESTAT.
Choudhary Satyajit Misra, Senior Standing Counsel appearing for the Department urged that CESTAT should have entertained the Appeals and decided the issue as to whether all the conditions stipulated in the Exemption Notification No.79/95-Cus (as amended) were fulfilled.
He further submitted that CESTAT should have believed the report of the Chemical Laboratory of Kolkata which found presence of CaO at less than 53% in preference to the test report submitted by Tata Iron & Steel Co.
The Bench observed that, the questions of law as posed in the present appeals do not fall for consideration, especially when the department having accepted the order of remand passed by the learned CESTAT, the Original authority has rendered his findings.
It was held that “it is held that the learned CESTAT has committed no error while rejecting the appeals” and the appeals of the revenue were thus dismissed.
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