HIGH COURT OF RAJASTHAN
Mangalam Cement Ltd.
versus
Superintendent, Central Excise Kota
D.B. CIVIL WRIT PETITION Nos. 1624, 1847, 1891, 1899,
1900 to 1903, 2118 & 2138 of 2013
MARCH 1, 2013
ORDER
Amitava Roy, Chief Justice
The impugnment, common in the instant batch of proceedings, is mounted against the Circular No.967/01/2013-CX dated 1.1.2013 communicated by letter F.No.208/36/2012-CX.6 dated 1st January, 2013 of the Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, New Delhi thereby directing initiation of recovery proceedings against the confirmed demands in the manner corresponding to the contingencies as detailed therein. As consequent to this circular demands have been raised by the concerned revenue authorities, the petitioners being aggrieved thereby, seek redress.
2. We have heard Mr. Rishabh Khandelwal, Mr. Sanjay Jhanwar, Mr. Sameer Jain, Mr. R.L Agarwal and Mr. P.K. Kasliwal, learned counsel appearing for the petitioners and Mr. Anil Mehta and Mr. Ajay Shukhla, learned counsel appearing for the respondents.
3. Considering the subject matter of assailment and the analogy of the grounds thereof, dilation on the individual facts is considered inessential and skeletal narration of the factual background from the pleadings of lead case- D.B. Civil Writ Petition No.1891/13 would suffice. The petitioner-Mangalam Cement Limited has pleaded that it is engaged in the business of production/manufacture and sale of cement and is registered manufacturer of excisable goods. A show cause notice being C.No.V (25)3/18/Demand/2011/4152 dated 13.6.2011 was issued by the departmental authorities on the basis of scrutiny of monthly ER Returns filed by the petitioner for the months from June, 2010 to December, 2010 alleging that it had availed the cenvat credit of service tax paid on different services received by it in relation to maintenance and repair works of its residential colony, which did not appear to be eligible input services as per rule 2(1) of the Cenvat Credit Rules, 2004 (for short, hereafter referred to as “the Rules of 2004”). Penalty together with interest was proposed under the relevant provisions of the Rules of 2004.
4. The petitioner filed its reply to the show cause notice, whereafter, the learned Assistant Commissioner, Central Excise Division, Kota vide Order-in- Original No.06(CE-Demand) 2012 dated 14.2.2012 affirmed the demand alongwith interest and penalty. Being aggrieved, the petitioner has preferred an appeal under section 35 of The Central Excise Act, 1944 (for short, hereafter referred to as “the Act”) before the Commissioner (Appeals), Jaipur-I against the resultant demand alongwith interest and penalty of Rs. 1,86,989/-. Alongwith the appeal, the petitioner has also filed a separate application for staying the recovery of the cenvat credit disallowed, interest and penalty till the disposal thereof. According to it, not only the appeal is pending, its prayer for stay of realization of the cenvat credit alongwith interest and penalty has not yet been considered and disposed of on merits. The framework of facts in bare essential, to reiterate, being substantially the same in all the petitions, the individual facts are being avoided for the sake of brevity. Admittedly, the petitioners’ appeals alongwith the applications for stay of demands raised by the revenue authorities are presently sub-judice before the statutory forums prescribed by the Act.
5. Before adverting to the rival submissions, apt it would be at the threshold, to notice the salient features of the impugned circular dated 1.1.2013. As would be evident therefrom, it is addressed to the concerned authorities of the Central Excise and Customs to initiate recovery proceedings against the confirmed demands in the eventualities as enumerated therein. It records as well the rescission of seven circulars hitherto existing on the issue of recovery of confirmed demands. The situations and the points of time for initiation of the processes of such recovery as mandated by the impugned circular are tabled hereinbelow for ready reference: –
