Commissioner of Central Excise Vs SS Engineers (Supreme Court of India)
The Supreme Court observed that, for the subsequent period, the Department had taken the stand that the bought-out items were not entered in the factory, the assessee had not claimed credit on those items, and therefore there was no case for adding their value to the assessable value or initiating proceedings through a show cause notice. The Court held that, for the earlier period forming the subject matter of the present appeal, the Department could not adopt a contrary stand. Accordingly, it found no merit in the appeal and dismissed the Civil Appeal. Pending applications were ordered to stand disposed of.
It was also submitted before the Court that certain appeals could no longer be considered on merits because the respondent had undergone the resolution process under the Insolvency and Bankruptcy Code. Relying on Ghanashyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited, reported in (2021) 9 SCC 657 (paragraphs 102.1 and 102.3), it was stated that the statutory dues owed by the respondent to the Department had stood extinguished and would no longer be the subject matter of adjudication. In view of this submission, the Supreme Court disposed of the Civil Appeals in those terms. Pending applications were also disposed of.
