Eastern Coalfields Ltd. Vs Commr. of Central Excise (CESTAT Kolkata)
The appeal arises from demands of Central Excise duty on coal cleared by Eastern Coalfields Ltd. for the period March 2011 to June 2017. The appellant had not included Royalty, Stowing Excise Duty (SED), Rural Employment and Production Cess, Primary Education Cess, PWD Road Cess and Asansol Mines Board of Health Cess in the assessable value. Eleven periodical/unit-wise show cause notices were issued, followed by six Orders-in-Original confirming duty, interest and penalties.
The appellant first challenged the delayed adjudication. It relied principally on Kopertek Metals Pvt Ltd Vs Commissioner of CGST (West), Final Order Nos. 59511-59720/2024 dated 25.11.2024, which held that the statutory adjudication timelines under Section 11A(11) of the Central Excise Act could not be ignored without a justified circumstance preventing timely adjudication. The appellant contended that eight of the relevant SCNs had been adjudicated beyond the prescribed period.
The Revenue disputed application of Kopertek Metals, pointing out differences in the periods taken for adjudication and contending that the expression “where it is possible to do so” afforded flexibility. The Tribunal examined the statutory language and the authorities discussed in Kopertek Metals, including the Delhi High Court decisions concerning the meaning of that expression. It also considered the Revenue’s objections based on other CESTAT decisions and the question of judicial discipline.
