Custom, Excise & Service Tax Tribunal
M/S. Aura Textile vs Commissioner Of Central Excise & St, ... on 31 January, 2018
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL SCO 147-148, SECTOR 17-C, CHANDIGARH 160 017 COURT NO. I Appeal No. E/50237/2015-DB Date of Hearing/ Decision : 31.01.2018 [Arising out of Order-in-Original No. OIO-CHD-CEX-001-COM-78-2014 dated 13.10.2014 passed by the Commissioner Central Excise & ST, Chandigarh] M/s. Aura Textile : Appellant vs. Commissioner of Central Excise & ST, Chandigarh : Respondent
And Appeal No. E/50518/2015-DB Commissioner of Central Excise & ST, Chandigarh : Appellant vs. M/s. Aura Textile : Respondent Appearance:
Shri Surjit Bhadu, Advocate for the Appellant/ Assessee(s) Shri Vijay Gupta, A.R. for the Respondent(s) CORAM:
Honble Mr. Ashok Jindal, Member (Judicial) Honble Mr. Devender Singh, Member (Technical) Final Order No. 60072-60073/2018 Per : Ashok Jindal Both sides are in appeal against the impugned order.
2. The facts of the case are that the assessee is engaged in the manufacture of processed fabrics and paying concessional rate of duty in terms of Notification No. 14/2002-CE dated 01.03.2002. The benefit of said notification is available subject to fulfilment of the condition that the fabric should be manufactured out of duty paid raw materials. As the raw material was exempted from duty, so it was interpreted by the Revenue that the raw material used in the manufacture of fabrics is not duty paid, therefore, the assessee is not entitled to benefit of Notification No. 14/2002-CE dated 01.03.2002. In these set of facts, proceedings were initiated against the assessee and demand of duty was confirmed along with interest and penalty was also imposed. The said order was challenged before this Tribunal and the Tribunal confirmed the demand of duty but dropped the penalty against the assessee.
The order of this Tribunal was challenged by both the sides. The assessee challenged this order before the Honble Apex Court and the Revenue challenged the order before the Hon'ble High Court of Himachal Pradesh against dropping of penalty. The Tribunal gave the liberty to the assessee to show that they have not taken the deemed credit, they are entitled for cum-duty benefit or not. In the said action, the impugned order has been passed by giving the benefit of cum-duty and imposing penalty on the assessee. The assessee is in appeal against the impugned order, demanding duty and imposing penalty whereas, the Revenue is in appeal against giving the cum-duty benefit to the assessee.
3. Heard the parties. After passing the impugned order, certain developments took place, such as;
(a) The Hon'ble High Court of Himachal Pradesh vide order dated 29.05.2015, dismissed the appeal filed by Revenue against the order of this Tribunal dropping the penalty against the assessee, and
(b) The Honble Apex Court vide Order dated 04.03.2016 held that if the raw material used in the fabrics is duty free, then the same shall be held as the assessee has paid the duty and in that circumstance, the assessee is entitled for the benefit of Notification No. 14/2002-CE dated 01.03.2002.
As on merits itself, the assessee is entitled for the benefit of Notification No. 14/2002-CE dated 01.03.2002, in that circumstance, the impugned order deserves no merits. Accordingly, the same is set-aside.
4. In result, we hold that appellant-assessee is entitled for benefit of Notification No. 14/2002-CE dated 01.03.2002 and is required to pay duty on concessional rate of duty.
In these terms, both the appeals are disposed.
(Order dictated and pronounced in the court) Devender Singh Member (Technical) Ashok Jindal Member (Judicial) KL 3 Appeal Nos. E/50237, 50518/2015-DB