Commissioner of Central Excise Vs SS Engineers (Supreme Court of India)
The Supreme Court observed that, for the subsequent period, the Department had taken the stand that the bought-out items were not entered in the factory, the assessee had not claimed credit on those items, and therefore there was no case for adding their value to the assessable value or initiating proceedings through a show cause notice. The Court held that, for the earlier period forming the subject matter of the present appeal, the Department could not adopt a contrary stand. Accordingly, it found no merit in the appeal and dismissed the Civil Appeal. Pending applications were ordered to stand disposed of.
It was also submitted before the Court that certain appeals could no longer be considered on merits because the respondent had undergone the resolution process under the Insolvency and Bankruptcy Code. Relying on Ghanashyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited, reported in (2021) 9 SCC 657 (paragraphs 102.1 and 102.3), it was stated that the statutory dues owed by the respondent to the Department had stood extinguished and would no longer be the subject matter of adjudication. In view of this submission, the Supreme Court disposed of the Civil Appeals in those terms. Pending applications were also disposed of.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Having regard to the fact that for the subsequent period, the Department has taken a stand that the bought-out items are not entered in the factory and the Assessee has not claimed credit on them, there is no case for adding their value in the assessable value and hence no proceeding need be initiated in the form of a show cause notice, we find that for the previous period, in respect of which this appeal arises, the stand of the Department cannot be contrary to what has been stated above. Hence, we do not find any merit in the appeal. The Civil Appeal is dismissed.
Pending application(s) shall stand disposed of.
It is stated at the Bar that the appeals can no longer be considered on merits in view of the fact that the respondent herein has undergone the process of resolution under the provisions of the IBC and having regard to the dictum of this Court in Ghanashyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited, reported in (2021) 9 SCC 657 (paragraphs 102.1 and 102.3), the statutory dues owed by the respondent to the appellant (Department) shall no longer be the subject matter of adjudication, as it has stood extinguished.
In view of the aforesaid submission, the Civil Appeals are disposed of in the aforesaid terms.
Pending application(s) shall stand disposed of.
