Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 1152 - AT - Central ExciseCancellation of registration certificate - Interest demand - place of removal - duty ought to have been paid on 17-12-2007 i.e. the date on which Central Excise registration was granted to Sri Chamundeshwari Sugars Ltd.- whether the goods can be deemed to have been removed on the date on which the factory premises were handed to Sri Chamundeshwari Sugars Ltd? - Held that:- It cannot be said that there was deemed cancellation of registration certificate on 17-12-2007 and there was no deemed removal of sugar on the date of transfer and therefore there was no need for the appellants to pay duty before clearances and since they have paid the duty at the time of removal from the place of removal i.e. a portion of warehouse belonging to them, it has to be held that the demand for interest cannot be sustained. The departmental officers have failed to ensure that the registration certificate of the appellant was cancelled which invariably is done before a registration certificate is issued to the next person. In such cases invariably, the person who is surrendering the license or whose license is cancelled is required to pay all the arrears or pay duty on the goods. If they were to do so, the duty would have been collected on the date itself. Similarly if the appellants were to be aware of these provisions, they could have taken permission to store the goods elsewhere without payment of duty from the Commissioner explaining the peculiar circumstances and then also there could have been no problem. The Commissioner has the power to give permission to store the goods without payment of duty elsewhere. If the proper procedure was to be followed, duty would have been collected or permission would have been given for storage elsewhere keeping the fact in mind that the sugar manufactured by the appellant was to be cleared to the market only with the clearance of the concerned Government authority. However, have not been able to find legal provision which provides for enforcement of the demand made by the Revenue. - Decided in favour of assessee
|