The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ordered fresh adjudication as there was willingness to pay excise duty as per normal process of debonding at the time of exit from Export Oriented Units (EOU) scheme.
The facts of the case are that M/s. Beach Minerals Company, the appellant which is an 100% EOU, were holders of LOP/Green card valid up to 6.10.2014 for manufacture of garnet, ilmenite, rutile and zircon. However, their LOP/Green card along with bonded warehouse license and in-bond manufacture sanction order were found to have not been extended after its expiry on 06.10.2014.
After due process of law, the Adjudicating Authority confirmed the demand with interest and imposed penalty. Aggrieved by the said order, the appellant approached the Commissioner (Appeals) who after examining the matter while upholding the demand of duty along with interest set aside the invocation of extended period of limitation since the demand was issued by virtue of B-17 bond.
The Counsel for the appellant submitted that the appellants are prepared to pay duty on the finished goods manufactured and raw material available in stock which was not cleared after the amount is reworked out, taking into consideration the depreciation of goods, the fact that the packing material have become obsolete and are to be destroyed etc. They were not able to proceed further in the matter due to the pending appellate proceedings. They hence prayed suitable orders may be passed in the matter.
The Tribunal of M Ajit Kumar, Technical Member observed that “The appellant has showed his willingness to pay the duty as per the normal process of debonding at the time of exit from EOU scheme. Hence, I feel that in the light of the development the matter needs to be remanded to the adjudicating authority to examine the facts and decide all the issues raised by the appellant regarding depreciation, destruction of obsolete goods etc. and arrive at the duty payable along with interest, afresh.”
“I set aside the impugned order and remand the matter back to the learned Adjudicating Authority to decide afresh the issues relating to the demand for duty and interest only, after considering any written request from the appellant and hearing him in the matter, based on the in-principle exit order given by the D.C. and further developments in the matter if any” the Tribunal noted.
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