Debonding Application of Dr Reddy’s Lab Upheld by HC : Supreme Court Dismisses SLP [Read Judgement]

The Supreme Court dismissed the petition(s) for Special Leave (SLP) to Appeal as there was no case for interference made out in exercise of our jurisdiction under Article 136 of the Constitution of India. The High Court of Telangana in its order upheld the debonding application of Dr Reddy’s Laboratories from which the SLP was filed

A two judge bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan was considering the SLP arose out of Final judgment and order dated 13-11-2024 in CEA No. 13/2020 passed by the High Court for the State of Telangana at Hyderabad.

The appeal before the High Court under Section 35G of the Central Excise Act, 1944, is directed against the order dated 21.03.2019 passed by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Hyderabad (“the Tribunal”).

Dr Reddys Laboratories Ltd, the respondent–assessee, which is an export-oriented unit, had filed an application for de-bonding on 14.10.2009 and gave the details of the stock on 20.10.2009. The final exit order under the de-bonding scheme was issued on 09.03.2010.

The office of the Deputy Commissioner of Customs & Central Excise, Hyderabad, has issued a letter bearing C.No.IV/16/40/2009-Tech (PF), dated 11.02.2010, by which the assessee was required to pay various duties. The assessee was aggrieved by the directions contained in paragraph 4 of the aforesaid letter.

The assessee filed an appeal before the first appellate authority. The first appellate authority dismissed the appeal. Being aggrieved, the assessee filed an appeal before the Tribunal. The Tribunal, by an order dated 21.03.2019, has allowed the appeal.

The Tribunal has taken note of a similar issue of de-bonding and discharge of central excise duty on semifinished and finished goods lying in stock on the date of final exit order in the case of the assessee itself. It has further been noted that against the order of the Tribunal, a Central Excise Appeal, namely C.E.A.No.103 of 2015, was preferred before the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh, which was dismissed as infructuous on 14.03.2016.

GST Refund Claim Paid by Revenue Along with Interest: Supreme Court Dismisses SLP [Read Judgement]

It is also pertinent to note here that the High Court in the case of the assessee itself, by an order dated 14.03.2016, had upheld the order of the Customs, Excise & ServiceTax Appellate Tribunal and has dismissed the appeal as infructuous. The High Court dismissed the appeal in absence of substantial question of law arising for consideration in the appeal.THE COMMISSIONER OF CENTRAL TAX MEDCHAL GST CUSTOMS vs M/S DR REDDYS LABORATORIES LTD

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates