Case Law Details
Fresenius Kabi Oncology Limited Vs Commissioner of Central Excise (CESTAT Chandigarh)
CESTAT has determined that the language and tone of the show cause notice (SCN) clearly intended to deny deductions for Octroi and Additional Sales Tax. The SCNs mentioned “PME” in both cases, but in one SCN, the denial of deductions for Octroi and Additional Sales Tax was mentioned twice after “PME.” In another instance, the SCN mentioned “PME” followed by Octroi charges and Additional Sales Tax in brackets only once, with the term “etc.” used once as well. Despite the use of “PME” and “etc.” in a few places, the essence of the SCNs was to reject the deduction for Octroi and Additional Sales Tax due to their equalized claim, even on non-excisable goods. The term “etc.” when associated with Octroi and Additional Sales Tax refers to statutory or government levies, rather than post-manufacturing expenses like secondary freight. The tribunal emphasized that SCNs should be clear and unambiguous, and the department cannot demand payment based on figures mistakenly provided by the appellant. In this case, the SCN did not mention denying the deduction for secondary freight, and thus, the department cannot claim duty confirmation for secondary freight at this stage. Furthermore, the tribunal previously stated that deductions for Octroi and Additional Sales Tax are permissible, and the case is remanded to the original authority to allow deductions as indicated in the order.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
These two appeals are filed against the orders of the Commissioner (Appeals), Chandigarh which were passed in remand consequent upon this Tribunal remanding the matter back to the authority vide Order No.355-364/2009-EX (DB) dated 30.04.2009.
2. Brief facts of the case are that the appellants M/s Fresenius Kabi Oncology Limited (previously known as Dabur India Limited, Injection Division) are engaged in manufacture and clearance of PP Medicaments. During the visit to the factory, Officers of the Preventive Unit observed that the appellants were clearing the medicaments claiming deduction on the count of Octroi charges and Additional Sales Tax on an equalized basis rather than on actual basis. SCNs were issued and confirmed and the same have reached this Tribunal in the second round of litigation.
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