Tata Steel Limited Vs Union of India & Ors (Calcutta High Court)
Calcutta High Court held that reversal of CENVAT Credit made was voluntary and doesn’t tantamount to pre-deposit within the meaning of the pre amended Section 35F of the Central Excise Act. Accordingly, the writ petition is dismissed.
Facts- Challenging the common final order dated 16thApril, 2024 passed by the learned Customs, Excise and Service Tax Appellate Tribunal, Eastern Zonal Bench, Kolkata in Excise Appeal thereby, holding the appeals to have abated consequent upon the corporate35F insolvency of the petitioner’s erstwhile entity, M/s. Bhusan Steel Ltd., the instant writ petitions under Article 226/227 have been filed. The writ petitions have since been assigned before this Court by the Hon’ble the Chief Justice vide order dated 7thFebruary, 2025 and are accordingly, taken up for consideration together.
Conclusion- Held that I have no doubt in my mind that there was no mandatory pre-deposit required to be made for maintaining the above appeals. The reversal of CENVAT Credit to the extent of Rs. 140,46,88,065/-, Rs.2,74,86,476/-, Rs.2,09,40,479/- and Rs.15,46,214/- by BSL., was voluntary and not a pre-deposit within the meaning of the pre amended Section 35F of the said Act, especially when waiver of pre deposit was sought for and was granted, unlike the amended section 35F, which mandatorily requires the pre deposit to maintain the appeal. In the instant case, admittedly, the original corporate debtor BSL has been wound up and ceased to exist from the date of he order passed by the NCLT. I find that the entire case of the petitioner proceeds on the premise that notwithstanding the abatement of the appeals, the amount deposited by the said BSL by way of reversal of CENVAT credit is required to be returned to them, as there is no authority in law for the department to retain the said amount which was essentially in nature of security deposit.
