Delhi High Court: Phonetic Similarity between Boat & Boult Can Cause Confusion Online  ||  SC: Recording Reasons Is Mandatory For Searches without A Warrant under Special Laws  ||  SC Dismissed MP Police Plea against Quashing FIR Alleging Marital Cruelty against MLA Umang Singhar  ||  SC Held Financial Bids in Public Tenders Cannot Be Altered Post-Opening To Protect Process Sanctity  ||  SC: Defendant Cannot File a Counter-Claim against a Co-Defendant under Order VIII Rule 6-A CPC  ||  Supreme Court Ruled That Barring Non-Muslims from Creating Waqfs Is Not Prima Facie Arbitrary  ||  SC Rejected Writ Petition Seeking Review of Judgment Upholding WB Madrasah Service Commission Act  ||  SC Grants Interim Bail to Mahesh Raut on Medical Grounds in Bhima Koregaon Case  ||  SC: Non-Production of Contraband Not Fatal If Seizure and Sample-Drawing Follow S.52A of NDPS Act  ||  Supreme Court Takes Suo Motu Cognizance of Industrial Pollution in Rajasthan's Jojari River    

Vishnu Fragrance Pvt. Limited Vs. Commissioner, Central Goods & Service Tax and Central Excise - (Customs, Excise and Service Tax Appellate Tribunal) (17 Jun 2021)

Unless the declaration filed by a manufacturer is found to be untrue or false, no demand for additional duty can be raised

MANU/CE/0063/2021

Excise

The issue in present appeal is whether demand for differential duty can be raised on assumptions and presumptions under the Chewing and Unmanufactured Tobacco Packing Machine (Capacity Determination & Collection of Duty) Rules, 2010, read with Section 3A of the Act.

The Appellant was engaged in the manufacture of chewing tobacco and was registered with the Excise Department and paying duty under the compounded levy scheme under Section 3A of the Act read with Chewing & Unmanufactured Tobacco Packing Machine (Capacity Determination & Collection of Duty) Rules, 2010 (CT Rules, 2010).

Under the scheme of CT Rules, 2010 read with Section 3A of the Act, unless the declaration filed by a manufacturer is found to be untrue or false, no demand for additional duty can be raised. In Rule 18(2) of the CT Rules, 2010 - if it is found that, goods have been manufactured or cleared from a unit which is not registered or the number of machine or the RSP of the pouches is contrary to the declaration, than the assessee can subject to demand of the duty and levy of penalty. Admittedly, in the facts of the present case, the Department have not found any case of mis-declaration or any other misgiving on the part of the appellant.

The whole case of Revenue is made out on the basis of assumptions and presumptions, based on the subsequent machine installed in the month of May, 2010, which is not permissible under the scheme of CT Rules, 2010. The order determining duty liability dated 26.04.2010 has not been appealed, and as such, the same is binding on the Department. The impugned order is set aside. Appeal allowed.

Tags : DEMAND   DIFFERENTIAL DUTY   LEGALITY  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved