Case Law Details
Ozone Pharmaceuticals Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that confirmation of demand of duty unjustified if in the totality of the facts and circumstances of the case, no actual loss has been caused to the revenue. Thus, duty demand set aside in absence of any loss of revenue.
Facts- M/s. Ozone Pharmaceuticals Limited as well as M/s Ozone Ayurvedics are engaged in manufacturing of medicines falling under sub heading 3003 10 of the 1st Schedule to the Central Excise Tariff Act, 1985.
The appellant contested that the intent with which the amendments of Notification No. 61/2002 were given retrospective effect, vide Finance Act, 2003, was met by the Appellants upto the date of its enactment. Even the provisions of Section 153(4) have been wrongly interpreted by the department in the present case to mean that the said provision mandates the recovery of refund by only confining the duty payment and credit accumulation to the period upto 22.12.2002. This is neither brought out from the express language of the provision nor from the intent thereof. The Appellants by utilizing the entire Cenvat credit upto the enactment of Finance Act, 2003 never got any refund under the Notification in excess, thus, there is no question of recovery by invoking the said provision.
Conclusion- Held that demand of duty cannot be confirmed against the assessee if in the totality of the facts and circumstances of the case, no actual loss has been caused to the revenue.
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