Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 2 - AT - Central ExciseClosure of proceedings on the ground that appellant has waived their right to a written show cause notice - appellant deposited the demand with interest and penalty under protest to buy peace - CENVAT Credit - paper invoices/fake documents - no inputs received - the bone of contention between the appellant and the DGCEI is that the settlement is not in the proper legal spirit, neither it is out of free consent and have further exposed the appellant to adverse inference particulary under the other tax laws and also as a matter of business repute - HELD THAT:- In the facts of the present case, in view of the non acceptance of the allegation of the DGCEI by the appellant, as to non receipt of the inputs in question, we hold that the purported waiver vide communication dated 20.07.2016 is bad and illegal and is not enforceable against the appellant. Due to non agreement with the allegation of the DGCEI by the appellant, the DGCEI was bound to issue show cause notice and thereafter proceed in accordance with law. It has been provided in the CBEC circular / clarification dated 18.08.2015 that the letter of closure should be issued by an officer equivalent to the adjudicating authority. Further, quantification of the demand can only be communicated to an assessee once an investigation gets completed. Further, as per CBEC clarifications, a letter of closure is required to be issued without a separate adjudication order. Thus, the said closure dated 29.07.2016 is equivalent to an adjudication order, for all practical purposes. Thus, even instructions dated 18.08.2015 of CBEC have also been circumvented by ADG, DGCEI by issuing the closure letter, instead of a show cause notice, there being non acceptance of the allegation of the Revenue by the appellant / assessee. The impugned letter of closure dated 29.07.2016 is bad and illegal and the same is accordingly set aside. The said closure letter is neither in the spirit of the CBEC‟s circular/ clarification dated 18.08.2015 and is evidently in violation of the provisions of Section 11 A(4) read with Section 11 AC (1)(d). Appeal allowed - decided in favor of appellant.
|