Super Forging & Steels Ltd Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
The appeal concerned the valuation of finished goods cleared by the appellant to its own unit on payment of Central Excise duty. The Department alleged that the goods had not been valued correctly and raised a demand of Rs.29,33,166, which was confirmed by the Adjudicating Authority.
The appellant submitted that during the same period it had paid Rs.16,60,354 through supplementary invoices. According to the appellant, this payment had not been considered by the Adjudicating Authority while passing the Order-in-Original.
The appellant further submitted that the Commissioner (Appeals) dismissed its appeal solely on the ground of non-compliance with the pre-deposit requirement without examining the merits of the dispute.
In the de novo proceedings, the appellant contested the entire demand of Rs.29,33,166, furnished details of the payment of Rs.16,60,354, and stated that the recipient unit had taken CENVAT credit of that amount. The appellant also contested the balance demand.
The Tribunal observed that during the relevant period the requirement of pre-deposit before the Commissioner (Appeals) was governed by the Commissioner’s discretionary powers. It held that the appellant’s payment of Rs.16,60,304 was required to be treated as a pre-deposit. Accordingly, the Tribunal held that the appeal should be reheard by the Commissioner (Appeals).
