Case Law Details
Commissioner of GST and Central Excise Vs. JSW Steel Limited (Madras High Court)
The issue under consideration is whether the an extended period of limitation of 5 years can be allowed to the Adjudicating Authority even if there is no suppression of facts made out against the Assessee?
High Court states that they fail to understand that when the Assessee had changed its method of valuation on the advice of the Department’s Authority himself based on some Audit objection as indicated in the communication, how by turning the tables on the Assessee, the Adjudicating Authority, without could invoke the extended period of limitation and hold that the Assessee is guilty of suppression of relevant facts viz., the Steel Bars were supplied to their Sister Concerns for the construction work and not for further manufacture of excisable goods, and thereby impose the duty following the Rule 4 Valuation and not Rule 8 Valuation as advised by the Department’s Authority itself, while the Assessee had followed the said advice/suggestion of the Department and changed its valuation method from Rule 4 to Rule 8 (110%) of the cost of transfer of goods. The Revenue Authority cannot be allowed to take a different stand at different point of time to suit their convenience and impose Additional Duty on the Assessee without establishing any suppression of facts on the part of the Assessee. The Revenue Authority, in the present case, could not disown or ignore the communication issued by the Superintendent of Central Excise which, very much supports the case of the Assessee that based on the Audit Objection, the Assessee was advised to adopt the valuation method of duty as per Rule 8 of CAS 4 basis and therefore, the Assessee cannot be blamed for suppression of facts in the present case and the extended period of limitation cannot be invoked by the Authority concerned under the impugned Show Cause Notice. Therefore, HC do not find any question of law to be arising in the Appeal filed by the Revenue which is without any merit and the same is liable to be dismissed and accordingly, it is dismissed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The Revenue has filed this Appeal under Section 35G of the Central Excise Act aggrieved by the order dated 29.4.2019 of the learned CESTAT, South Zonal Bench, Chennai allowing the Appeal of the Respondent/Assessee JSW Steel Limited
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