Custom, Excise & Service Tax Tribunal
M/S.Strides Shasun Ltd. (Formerly ... vs Cce, Puducherry on 28 October, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/40828/2016
(Arising out of Order-in-Appeal No.31/2016 (CXA-II) dated 29.1.2016 passed by the Commissioner of Central Excise (Appeals II), Chennai)
M/s.Strides Shasun Ltd. (formerly known
as Shasun Pharmaceuticals Ltd.) Appellant
Vs.
CCE, Puducherry Respondent
Appearance Shri M. Karthikeyan, Advocate for the Appellant Shri B. Govindarajan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 28.10.2016 Final Order No. 42047 / 2016 Appellants only dispute in this appeal is in respect of the scrap that arose out of damage caused by the cyclone, where there was a demand of Rs.5,60,540/- on the scrap. Similarly, learned counsel also says that learned Commissioner (Appeals) created his jurisdiction to decide the issue which was already an issue covered under Sl. No. 1 & 2 of the disputes stated in paragraph 8 of the appellate order. Sl. No. 1 & 2 relates to discharge of the liability on the scrap arose. When there is no dispute, learned Commissioner (Appeals) compiling Sl. No. 1 & 2 created an issue, which is unsustainable.
2. Revenue supports the order of the authority below.
3. The order shows that there is a remand of the matter for examining the materials sent to job worker and scrap arising of non-CENVAT material. In view of the remand, it is required for the adjudicating authority to enquire whether the appellant has discharged the duty liability in respect of the scrap covered by issue 1 & 2 stated in para 8 of the appellate order. If that is covered there, there shall be no further demand at all. The authority should also examine whether the appellant has reversed the CENVAT credit availed on the input that was damaged due to cyclone. If there is a reversal there shall be no demand of the duty thereon. Similarly, the damaged work in progress not having any utility due to damage by cyclone, there was reversal of the CENVAT credit availed thereon. If the authority finds that such credit has been reversed by the appellant, there shall be no demand thereof.
4. With the aforesaid observations and directions, learned adjudicating authority shall satisfy as to discharge of demand by the appellant as stated above and also the CENVAT credit reversed to the extent indicated above.
5. This remand having been made on the limited scope as stated above, the jurisdiction of the authority is confined to that scope to hear the appellant afresh and recording the reason of decision shall pass appropriate order.
6. The facts and circumstances suggest that there was no evasion made by the appellant. Therefore, there shall be no penalty and that is waived.
7. In the result, appeal is allowed in respect of penalty and remanded on the other aspect to the extent indicated above.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2