Case Law Details
Commissioner of Customs Vs Dalmia Cement (Bharat) Ltd (CESTAT Chennai)
Introduction: In the recent case involving the Commissioner of Customs and Dalmia Cement (Bharat) Ltd, the Chennai branch of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Dalmia Cement. The judgment focused on the Department’s failure to review orders timely, resulting in the approval of a refund claim.
Analysis: Dalmia Cement had initially filed refund claims which were sanctioned by the original authority. The Customs Department, disagreeing with this sanction, filed appeals against the decision. However, the Commissioner (Appeals) highlighted that these appeals were time-barred due to delays in passing the review orders.
Despite arguments from the Customs Department, the Commissioner (Appeals) maintained that the Department had not adhered to the timelines stipulated under Section 129 D. This section mandates that review orders must be passed within three months from the communication date of the original decision. Following this, any appeal against the review order should be lodged within a month from its communication. The Commissioner (Appeals) observed significant delays, making the appeals time-barred, and with no provision for condonation in cases filed under Section 129D, all the appeals were rejected.
It’s also worth noting that a similar case had been presented before the Tribunal earlier this year, where once again, the Commissioner (Appeals)’ observations were upheld, marking a consistency in legal interpretation.
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