Case Law Details
Ronix Polymer Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT find that the Ld. Joint Commissioner has observed that the assessee has suppressed the fact of availing the benefit of SSI exemption under Notification No. 1/93-CE (supra) by not paying the duty on finished goods during the period in dispute i.e. 1994-95, which allegation was not made in the SCN dated 02.04.1996 and, therefore, the proceedings have travelled clearly beyond the scope of allegations made in the SCN which cannot be legally sustained. The main reason that has been assigned to disallow the credit in the impugned order is that the Appellant has availed the aforesaid SSI exemption which was never alleged in the SCN. The Department was aware of the fact with regard to the availment of above exemption since that has been duly disclosed in the quarterly excise returns, though belatedly filed, and hence the same was within the knowledge of the Department at the time of issuance of the SCN. It is a settled legal position that when the assessee was not put to notice with regard to the reasons basis which the demand is being sought to be made, the proceedings cannot be legally sustained. Hence, the demand is liable to be quashed on this ground alone.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The instant Appeal has been filed by the assessee, M/s. Ronix Polymer Private Limited, against Order-in-Appeal dated 25.04.2019 whereby the Ld. Commissioner (Appeals), Kolkata has upheld the disallowance of Modvat credit of Rs.17,56,079.43 and has also upheld the imposition of penalty of Rs.15,00,000/-.
2. The present case pertaining to the period 1994-95 is in its third round of litigation before this Tribunal. The brief facts of the case are that the Appellant obtained registration with Central Excise Department on 17.06.1994 and filed a declaration on 20.12.1994 under Rule 57G of the Central Excise Rules, 1944 indicating their intention to avail transitional Modvat credit benefit. However, they submitted central excise quarterly return for Financial Year 1994-95 belatedly on 28.08.1995 which was alleged to be in contravention of Rule 173G of the Central Excise Rules, 1944. The required classification list as per rules was also submitted belatedly on 28.03.1995. Vide their Letter dated 19.09.1995, they sought permission to avail transitional Modvat credit in terms of the aforesaid Rule 57H of the Central Excise Rules, 1944 duly accompanied with the duty paying documents and the copies of RG-23A registers.
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