Case Law Details
KEI Industries Limited Vs Commissioner (Appeals) (CESTAT Delhi)
CESTAT Delhi held that Commissioner (Appeals) did not have the power to issue the notice under section 73(1) of the Finance Act. Accordingly, order passed thereon deserved to be set aside.
Facts- M/s. KEI Industries Limited has assailed the order dated 31.03.2021 passed by the Commissioner (Appeals), Central Excise & CGST, Jaipur in the appeal filed by the appellant against the order dated 19.03.2018 passed by the Additional Commissioner. The Additional Commissioner, by the said order, adjudicated the show cause notice dated 07.09.2017 issued for the period from October 2014 to June 2017 and confirmed the demand of Rs.1,70,89,498/- with interest and penalty. The Commissioner (Appeals), however, after issuing a fresh notice dated 29.12.2020 to the appellant by exercising powers under section 85 (4) of the Finance Act 1994 read with the second proviso to section 35A (3) of the Central Excise Act 1944 and section 73 of the Finance Act confirmed the demand of Rs.37,05,65,104/- proposed in the notice dated 29.12.2020 with interest and penalty.
Conclusion- Held that the Commissioner (Appeals) did not have the power to issue the notice under section 73(1) of the Finance Act. The notice dated 29.12.2020, therefore, that was issued by the Commissioner (Appeals) under section 73(1) of the Finance Act was without jurisdiction and consequently the order passed by the Commissioner (Appeals) confirming the demand proposed in the said notice would also be without jurisdiction. The order dated 31.03.2021 passed by the Commissioner (Appeals), therefore, deserves to be set aside on this ground alone.
FULL TEXT OF THE CESTAT DELHI ORDER
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