Dabur India Ltd Vs Commissioner of Central Excise (CESTAT Chandigarh)
CESTAT Chandigarh allowed the appeals filed by M/s Dabur India Ltd. by way of remand, directing the appellate authority to recalculate the disputed excise demands after considering the special rates of value addition fixed by the competent authority. Dabur’s two units had availed area-based exemption under Notification No. 56/2002-CE dated 14.12.2002. Subsequent notifications, including Notifications No. 19/008 dated 27.03.2008 and 34/2008 dated 10.06.2008, restricted refund of excise duty based on value addition and provided for fixation of special rates. Following the Supreme Court’s decision in VVF Ltd. – 2020 (372) ELT 495 (SC), which upheld the validity of the notifications restricting the benefit, Dabur obtained special rates for its products. Meanwhile, demands had been issued for refund/self-credit allegedly availed beyond the prescribed value addition. The Tribunal found that the authorities had confirmed demands without taking the subsequently fixed special rates into account and therefore required the entire exercise to be redone. It also directed examination of Dabur’s contention that, in specified appeals, the Department had duplicated demands by seeking recovery of both excess refund/self-credit and excise duty allegedly paid through such credit. Referring to the appellant’s cited decisions, the Tribunal observed that both amounts could not be demanded together and directed the appellate authority to reconsider the duplication issue. The appeals were accordingly allowed by way of remand. The order was pronounced on 11.08.2026.
Background of the Excise Duty Dispute
M/s Dabur India Ltd. operates two units, Unit-I and Unit-II, and is engaged in manufacturing hair oils, shampoo, perfumes and toiletries. The units had availed the area-based exemption under Notification No. 56/2002-CE dated 14.12.2002.
