Pepsico India Holding Pvt. Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Ahmedabad)
The CESTAT Ahmedabad allowed the appeal filed against the order dated 27.12.2017 passed by the Commissioner (Appeals), GST & Central Excise, Vadodara, which had confirmed a demand of Additional Excise Duty (AED) amounting to Rs. 4,94,549/- along with interest and penalty. The appellant company was engaged in the manufacture of aerated water, soda, packaged drinking water, and fruit juice-based drinks falling under Chapter 22 of the Central Excise Tariff Act, 1985.
The dispute arose after the Union Government, through Budget 2014, introduced AED on aerated waters under Chapter Sub-heading 2202 10 by amending the Seventh Schedule to the Finance Act, 2005. The levy became effective from 11.07.2014 through Section 118 read with the Ninth Schedule to the Finance Act, 2014, imposing AED at the rate of 5% on waters containing added sugar or sweetening matter.
The appellant informed the department on 11.07.2014 that goods manufactured and cleared after 11.07.2014 would attract AED at 5%, but goods already manufactured and lying in stock as on midnight of 10.07.2014 would not attract AED at the time of clearance. The appellant also disclosed the quantity of stock lying as of midnight 10.07.2014. However, the department directed the appellant to pay AED on the pre-budget stock and later issued a show cause notice dated 18.03.2015 demanding AED on goods manufactured prior to 11.07.2014 but cleared after that date.
