Case Law Details
Vidyut Corporation Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad)
Introduction: The recent ruling by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Ahmedabad in the case of Vidyut Corporation vs. C.C.E. & S.T.-Daman addresses a crucial matter involving excise duty demands, interest, and penalties. The core issue revolves around a clerical error in mentioning the wrong registration number during the payment process.
Detailed Analysis: Vidyut Corporation, having undergone a change in its registration due to unforeseen circumstances, inadvertently paid excise duty under the wrong registration code. Despite the appellant’s proactive approach in notifying the error and seeking rectification, a show cause notice was issued, leading to a demand for Rs. 98,40,743 and a penalty of Rs. 50 Lacs.
The appellant’s counsel argued that, given the admitted fact of depositing the demand under the wrong registration, and considering the inadvertent nature of the mistake, demanding duty twice was unjust. Drawing parallels with the precedent set by the Sahara India TV case, the appellant emphasized the absence of malafide intent and the efforts made for rectification.
The Tribunal, in its careful consideration of the case, acknowledged the sole mistake made by the appellant in mentioning the wrong registration while paying excise duty. It highlighted that there was no case of non-payment of duty, making the demand unsustainable. The Tribunal also noted the appellant’s bona fide view that the department had rectified the mistake and emphasized the system fault wherein the old registration number, already surrendered, was still accepted for payment.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
