Case Law Details
Haryana Steet Glass Limited Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Introduction: The CESTAT Ahmedabad recently delivered a crucial decision in the case of Haryana Steet Glass Limited against the Central Excise and Service Tax Department. The order, dated 03.11.2023, grants relief to the appellant, directing re-adjudication on the computation of an approximately 6.7 Crore excise duty demand. The basis for this decision is the absence of proper document analysis regarding the clearance of sheet glass to the Domestic Tariff Area (DTA).
Detailed Analysis: The case involves Haryana Steet Glass Limited, a 100% Export Oriented Unit (EOU), engaged in the manufacture of sheet glass. The timeline extends from the trial production initiation in 1996 to the grant of an EPCG (Export Promotion Capital Goods) license in 1997. Despite receiving permission for clearance of finished goods to DTA, a subsequent demand for 6,76,07,490/- was raised by the Customs Authorities.
The appellant challenged this demand in the High Court of Gujarat (SCA No. 5478 of 1998). The High Court observed that the conversion from EOU to EPCG had a substantial impact on the duty demanded. Consequently, the demand letters were quashed on grounds of procedural lapses.
The Department, dissatisfied, appealed to the Supreme Court, leading to the issuance of a show cause notice in 2009. Despite repeated requests, the appellant contends that the Department failed to provide the basis for quantification of the demand. The impugned order-in-original confirmed the demand without supporting documents.
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