Hindustan Copper Ltd Vs Commissioner of Customs (CESTAT Mumbai)
In , the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, allowed the appeal against an Order-in-Appeal dated 27.12.2021, which had upheld recovery proceedings arising from an alleged erroneous customs duty refund. The dispute related to the import of tyres, tubes and flaps by the appellant on 12.09.1990. After the original assessment and payment of duties, the appellant filed a refund claim on 26.04.1991 on the ground that excess Countervailing Duty (CVD) had been charged. Upon re-assessment, the department reduced the duty liability and sanctioned a refund of Rs.8,42,613.70 on 30.03.1994. Subsequently, a Central Revenue Audit objection dated 17.11.1994 alleged that the concessional CVD rate under Notification No.41/1989-CE was wrongly applied to off-the-road vehicle tyres. Based on this objection, the department issued a demand notice dated 18.12.1995 seeking recovery of Rs.8,00,485/-.
The Tribunal observed that the matter remained inactive for nearly two decades, with the first hearing notice being issued only on 07.03.2014. The adjudicating authority eventually passed an order on 22.03.2018 confirming recovery of Rs.8,42,613/- with interest, and the Commissioner (Appeals) affirmed the same. The Tribunal found a fundamental defect in the proceedings because the demand confirmed exceeded the amount specified in the original demand notice, without issuance of any amended or supplementary notice. It held that adjudicating authorities cannot travel beyond the scope of the notice initiating proceedings.
