Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (2) TMI 113 - AT - Central ExciseSSI exemption Notification No.9/2003-CE dated 01.03.2003 - Cenvat credit on SS bar received in their factory during the year 2004-2005 - demand notice for reversal of cenvat credit of the inputs gone into the manufacture of the finished goods in process - Held that - Commissioner (Appeals) has not extended an effective hearing to the appellant and also the order is not a reasoned one. Finding force in the claim of the assessee that their address for correspondence as mentioned in their Appeal Memorandum in EA-1 Form before the Commissioner (Appeals) and before all other forums including this Tribunal, has been the same and it is their factory address from where the factory is still operating. This fact is not disputed by the the Department in these circumstances, there is a violation of principles of natural justice - the matter needs to be remitted to the Commissioner (Appeals) for a fresh decision without insisting any further predeposit as the appellant had already deposited an amount of Rs.30,000/- pursuant to the direction of this Tribunal - in favour of assessee by way of remand.
Issues:
1. Effective hearing not granted by the ld. Commissioner (Appeals) 2. Reversal of cenvat credit availed while benefiting from SSI Notification 9/03-CE dated 01.03.2003 Analysis: 1. The appellant filed an appeal against the Order-in-Appeal passed by the Commr. of Central Excise (Appeals), Kolkata. The appellant, engaged in manufacturing parts of tea processing machines, availed SSI exemption and cenvat credit on inputs during the financial year 2004-2005. The Department issued a demand notice for reversal of cenvat credit on inputs used in manufacturing finished goods and those in stock as of 31.03.2005. The adjudicating authority confirmed the demand and imposed a penalty. The ld. Commissioner (Appeals) upheld this decision, leading to the current appeal. The appellant argued that they were not given an effective hearing during the proceedings, and the address for correspondence remained the same. The Tribunal found a violation of natural justice principles due to the lack of effective hearing and remitted the matter back to the ld. Commissioner (Appeals) for a fresh decision without requiring further predeposit, allowing both parties to present necessary evidence. 2. The main issue in this appeal was the reversal of cenvat credit while availing the SSI Notification 9/03-CE dated 01.03.2003. The Tribunal noted that the ld. Commissioner (Appeals) did not provide an effective hearing to the appellant and the order lacked reasoning. The appellant's address for correspondence remained consistent, and the ld. A.R. for the Department did not dispute the lack of effective hearing. The Tribunal found a violation of natural justice principles and remanded the case for a fresh decision by the ld. Commissioner (Appeals), emphasizing the need for an opportunity of hearing and keeping all issues open for further consideration. The order of the ld. Commissioner (Appeals) was set aside, and the appeal was allowed by way of remand, ensuring a fair process for both parties.
|