Power Tools and Accessories Vs Principal Commissioner of C.G.S.T. and C.X (CESTAT Kolkata)
The appeal challenged Order-in-Appeal No. 06/Kol-N/Kol/2020 dated 06.08.2020, which had upheld the Order-in-Original confirming central excise duty of ₹6,72,997/- (including Education Cess), along with interest and an equal penalty, against the appellant.
The appellant manufactured Aluminium Baxter Flyers falling under Tariff Heading 84483320 on a job-work basis for the principal manufacturer, Sugan Engineering Private Limited, which supplied aluminium ingots as raw material. The principal manufacturer carried out heat treatment and other processes and thereafter supplied the finished Baxter Flyers to jute mills for making jute textiles. The appellant claimed exemption under Notification No. 6/2006-CE dated 01.03.2006, later superseded by Notification No. 12/2012-CE dated 17.03.2012, and did not pay central excise duty.
Following an audit, a show cause notice dated 02.05.2016 covering the period April 2011 to December 2012 alleged that the appellant failed to establish compliance with Condition No. 2 of the exemption notification, which required proof to the satisfaction of the Deputy Commissioner or Assistant Commissioner that the goods were cleared for the intended use, namely, by a jute mill for making jute textiles. It was also alleged that the goods had been cleared without payment of duty with deliberate intention to evade duty.
