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2023 (5) TMI 600 - CESTAT CHANDIGARHValuation - scope of show cause notice (SCN) - clearance of PP Medicaments - Deduction claim - it is contended that Octroi charges and Additional Sales Tax to be calculated on an equalized basis rather than on actual basis - secondary freight - HELD THAT:- The language and the tenor of the SCN are very clear to seek denial of deduction claimed on account of Octroi and Additional Sales Tax. Though, the word “PME” is used in both SCNs, in the SCN in respect of Appeal No. E/1226/2012, denial of deductions on account of Octroi and Additional Sales Tax are mentioned after the word “PME” not once but twice. Moreover, in the said SCN in Para 5, the deductions have been clearly mentioned to be on account of Octroi and Additional Sales Tax etc. without use of word “PME”. It was further found that in the SCN relating to the other Appeal No. E/1226/2012 word “PME” followed by Octroi charges and Additional Sales Tax in brackets was mentioned only once and term “etc.” is also used once. Notwithstanding the mere mention of the words “PME and etc.” in one or two places, the gist of the SCNs was to deny the deduction on account of Octroi and Additional Sales Tax for the reason that the same are claimed on an equalized basis, even though paid on some non-excisable goods. The SCN needs to be understood in that perspective alone. It has been held in several cases that the SCN is not an empty formality and the same needs to be clear and unambiguous. It is not open for the Department just to seek a demand on the basis of figures supplied by the appellant by mistake - In the instant case, there was no whisper of seeking denial of deduction on secondary freight and to that extent, there is no ambiguity in the SCN and it is not open for the Department to claim confirmation of duty on account of secondary freight at this juncture. Thus, Tribunal has clearly stated that the deduction on account of Octroi and Additional Sales Tax are permissible and the remand to the Original Authority to allow the deductions on the lines indicated in the order - appeal allowed.
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