CESTAT Kolkata Deletes ₹13.63 Lakh Excise Demand on Captively Used Factory Equipment

Tata Motors Limited Vs Commissioner (CESTAT Kolkata)

The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) concerned the confirmation of Central Excise duty demand of Rs.13,63,639/- for the period November 2015 to March 2017. The Adjudicating Authority confirmed the demand, and the Commissioner (Appeals) dismissed the appellant’s appeal on the ground that it had been filed with a delay of 8 days beyond the prescribed period.

The appellant submitted that the delay of eight days fell within the condonable period available to the Commissioner (Appeals) and should have been condoned. On merits, it was argued that the demand arose from denial of exemption under Notification No. 67/95, relating to goods manufactured and captively consumed within the factory. The disputed goods included trolleys, lifting tackles, trailers, cabinet work benches, racks, tables and similar items.

The appellant contended that the issue had already been decided in its favour by the Tribunal in Commissioner of Central Excise, Jamshedpur v. Tata Motors Ltd. [2010 (251) ELT 411 (Tri.-Kol.)]. It was further submitted that, for another period involving identical goods, the Commissioner (Appeals), through Order-in-Appeal No.586/JSR/2018 dated 19.12.2018, had also decided the matter in the appellant’s favour. According to the appellant, no further appeal had been filed against that order, demonstrating that the issue had attained finality. The appellant therefore requested the Tribunal to decide the appeal on merits instead of remanding the matter.