Commissioner of Central Excise Vs Krishna Wax (P) Ltd. (Supreme Court of India)
New Delhi: The Supreme Court of India has clarified the procedural path for challenging excise duty demands, ruling that preliminary internal orders by the Central Excise Department are not appealable. The apex court set aside an order by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that had allowed an appeal against an Assistant Commissioner’s internal decision regarding jurisdiction and whether a manufacturing activity had taken place, before a formal adjudication order was passed following a show cause notice.
The case, Commissioner of Central Excise Vs Krishna Wax (P) Ltd., stemmed from a search conducted by Central Excise officers at the premises of Krishna Wax (P) Ltd. in September 2005. The department suspected that the company was manufacturing excisable goods like Foots Oil, Pressed Wax, and Pressed Paraffin Wax without following mandatory procedures and paying excise duty.
Krishna Wax initially approached the Calcutta High Court challenging the department’s authority to proceed, arguing that no manufacturing activity was undertaken. The High Court, in an order dated November 28, 2005, directed the Assistant Commissioner to decide the preliminary objection regarding jurisdiction under the Central Excise Act before addressing other issues on merit.
