M/s. Ecoboard Industries Ltd. vs. Commissioner of C.E. and S.T. (Supreme Court); Civil Appeal Diary No(s). 24478/2024; Dated 11.07.2024
In a recent decision dated July 11, 2024, the Supreme Court of India addressed a significant case involving M/s. Ecoboard Industries Ltd. and the Commissioner of Central Excise and Service Tax. The case, Civil Appeal Diary No(s). 24478/2024, centers on whether central excise duty should be levied on an intermediate product, namely impregnated paper, produced during the manufacturing of particle boards.
It was contended that:
(i) the Tribunal had erred in as much as the intermediate product was not marketable and did not have shelf life, hence, as per Judgment of Supreme Court in Moti Laminates, no duty is payable;
(ii) the reliance placed on test report is incorrect as the sample of the product was confused with the specimen of the test sample. The Hon’ble Supreme Court condoned the delay and admitted the appeals.
The assessee is a manufacturer of particle board. It is exempt from payment of central excise duty. During the course of manufacture, intermediate product viz. impregnated paper comes into existence. The Revenue proposed to demand central excise duty on such intermediate products. Periodical show cause notices were issued and demands were confirmed. The appellate authority upheld the demands. The Hon’ble CESTAT, Mumbai upheld the demand of duty, whilst setting aside the penalty. Hence, appeals were filed before the Hon’ble Supreme Court.
It was contended that: (i) the Tribunal had erred in as much as the intermediate product was not marketable and did not have shelf life, hence, as per Judgment of Supreme Court in Moti Laminates, no duty is payable; (ii) the reliance placed on test report is incorrect as the sample of the product was confused with the specimen of the test sample.
The Hon’ble Supreme Court condoned the delay and admitted the appeals.
The matter was argued by Ld. Counsel Bharat Raichandani along with Senior Associates Deepak Kumar Khokhar and Annweshaa Laskar
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