Case Law Details
Ludhiana Steel Rolling Mills Vs Commissioner of Central Excise (CESTAT Chandigarh)
Introduction: The Ludhiana Steel Rolling Mills Vs Commissioner of Central Excise case has been a crucial litigation in understanding the importance of substantive evidence in the realm of excise duty and taxes. The Central Excise and Service Tax Appellate Tribunal (CESTAT) Chandigarh set aside a Show Cause Notice (SCN) that demanded Rs. 82,20,602 in excise duties from Ludhiana Steel Rolling Mills. This article aims to dissect the case, focusing on the legal arguments and the Tribunal’s rationale for its judgment.
Background and Allegations: Ludhiana Steel Rolling Mills, involved in the manufacturing of bars, rods, and rounds, received a Show Cause Notice from the Revenue Department. The SCN alleged that the company violated Section 6 of the Central Excise Act 1944 and Central Excise Rules, 2002, thereby evading excise duty on the scrap traded by them. The crux of the allegation was ‘clandestine removal’ of scrap from the manufacturing premises without appropriate payment of Central Excise Duty.
Legal Arguments by Ludhiana Steel Rolling Mills
Ludhiana Steel’s counsel presented several compelling arguments:
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