Case Law Details
Net Metallics Vs Union of India (Guwahati High Court)
Introduction: The case of Net Metallics vs. Union of India involves an appeal under Section 35(G) of the Central Excise Act, 1944, against an order issued by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The key issue in this case revolves around the requirement for pre-deposit when an Order-in-Original (OIO) is set aside by an appellate authority without confirming a demand.
Detailed Analysis: The appellant in this case, Net Metallics, is a partnership concern represented by Sri Jugal Kishore Mahanta. The respondents include the Union of India, the Commissioner of Central Excise and Service Tax in Dibrugarh, and the Additional Commissioner of Central Excise and Service Tax.
The dispute originated when Net Metallics filed Central Excise returns and claimed a refund of duty paid under Notification No. 20/2007-CE dated 25.04.2007. The refund was sought for the duty paid through PLA Account after availing CENVAT Credit, to which the appellant believed it was entitled.
However, the Additional Commissioner of Central Excise and Service Tax issued a demand-cum-show cause notice on 30.07.2013, alleging that Net Metallics had wrongly availed CENVAT Credit, including Education cess and Secondary and Higher Secondary Cess, amounting to Rs. 35,34,992 during the period from July 2012 to May 2013. The notice contended that this was in contravention of Rule 9 of the CENVAT Credit Rules, 2004, and therefore, the CENVAT Credit should be disallowed. Net Metallics was given 30 days to respond to the notice and appear for a personal hearing.
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