Indian Oil Corporation Ltd Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
Summary: The appellant, Indian Oil Corporation Ltd., challenged an adjudication order concerning a demand originally raised through a Show Cause Notice for Rs.4,18,73,419/-. After examining the documentary evidence placed before it, the adjudicating authority dropped the demand to the tune of Rs.39,000,527/- but upheld a balance demand of Rs.28,72,890/-. The Revenue did not file any appeal against the portion of the demand that had been dropped.
Before the Tribunal, the appellant submitted that the confirmed demand of Rs.28,72,890/- related to five instances in which CENVAT Credit had been denied. The appellant contended that proper documentary evidence was available in support of the credit and had been annexed with the appeal paper book, including documents placed at Annexures 5, 6, 7 and 8. The dispute therefore centred on verification and appreciation of the documentary evidence supporting the disputed CENVAT Credit. The Tribunal’s consideration was in the context of the CENVAT Credit Rules, 2004.
The Learned Authorised Representative appearing for the Revenue submitted that the documentary evidence produced by the appellant before the Tribunal required proper verification by the adjudicating authority.
After considering the case records and submissions, the Tribunal found that the matter was fit to be remanded. It accordingly remanded the proceedings to the adjudicating authority for verification of all documentary evidence to be placed by the appellant before that authority. The Tribunal did not finally determine the appellant’s entitlement to the disputed CENVAT Credit; instead, the issue was left for fresh examination and decision following verification of the supporting documents.
The Tribunal further noted that the dispute related to the period from 2008-09 to 2010-11. The adjudicating authority was directed to complete the denovo proceedings by following the principles of natural justice within three months from the date of receipt of the Tribunal’s order. The appellant was directed to cooperate with the adjudicating authority and provide all documentary evidence immediately upon receipt of the order. The requirement of following natural justice is also addressed in the principles of natural justice.
Thus, the Tribunal disposed of the appeal by remanding the matter for fresh verification of the documentary evidence. The order did not grant the disputed CENVAT Credit finally on merits and did not finally uphold the denial; the ultimate eligibility of the Rs.28,72,890/- credit was left to be determined by the adjudicating authority after verification in the denovo proceedings.
FULL TEXT OF THE CESTAT KOLKATA ORDER
Appellant was issued Show Cause Notice demanding Rs.4,18,73,419/-. The adjudicating authority, after verifying the documentary evidence placed before him, has dropped the demand to the tune of Rs.39,000,527/-. He has upheld the balance demand of Rs.28,72,890. Being aggrieved, the appellant has filed this appeal before the Tribunal. However, the Revenue has not filed any appeal, towards the dropping of the demand of over Rs.3.90 crores.
2. The Learned Counsel appearing on behalf of the appellant submits that the details of the confirmed demand of Rs.28,72,890/- is as per the table given at page 3 of the written submissions. He further submits that in all the five cases where the CENVAT Credits have been denied, the appellant has proper documentary evidence which has been annexed with the appeal paper book. He submits that the concerned documentary evidence is placed at annexure 5, 6, 7 and 8 and other documentary evidence placed before the Tribunal. The table is extracted below:-
3. The Learned AR appearing on behalf of the Revenue submits that the documentary evidence placed by the appellant before the T ribunal is required to be properly verified at the end of the adjudicating authority.
4. After going through the case records and the submissions made by the learned counsel, I find that this is a fit case to be remanded to the adjudicating authority. Accordingly, I remand the matter to the adjudicating authority to cause verification of all the documentary evidence to be placed by the appellant before him.
6. Since the issue pertains to the year 2008-9 to 2010-11, the adjudicating authority is directed to complete the denovo proceedings duty following the principles of natural justice, within three months from the date of receipt of this order. The appellant is also directed to cooperate and provide all the documentary evidence before the adjudicating authority immediately upon receipt of this order.
7. The appeal stands disposed of thus.
(Dictated and pronounced in the open court)
