Mahanadi Coalfields Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, partly allowed the appeal by modifying the adjudication order concerning the levy of Central Excise duty on the elements of Royalty and Stowing Excise Duty collected by the appellant during the period from April 2015 to 14 June 2015. The Tribunal upheld the demand of Central Excise duty on Royalty for the normal period of limitation, set aside the entire demand on Stowing Excise Duty, and waived the interest liability on the duty payable on Royalty.
The proceedings arose from a Show Cause Notice dated 24 May 2016 proposing recovery of Central Excise duty of Rs. 22,60,02,236/- on amounts relating to Royalty and Stowing Excise Duty, along with interest and penalty. The appellant contested the notice by disputing the allegations, pointing out computational errors and referring to duty already paid. The adjudicating authority accepted certain computational errors, acknowledged that the appellant had already discharged substantial duty liability, and recorded that there was no mala fide intention to evade duty. Accordingly, the proposal to impose penalty under Section 11AC was dropped. However, Central Excise duty of Rs. 20,34,91,473/- was confirmed, amounts already deposited were appropriated, and interest was held payable on the balance amount.
