w w w . L a w y e r S e r v i c e s . i n



Commissioner of Central Excise, Dibrugarh v/s M/s. Arunachal Iron & Steel Fabrication & Chemical Processing Unit


Company & Directors' Information:- S A L STEEL LIMITED [Active] CIN = L29199GJ2003PLC043148

Company & Directors' Information:- M M S STEEL PRIVATE LIMITED [Active] CIN = U27109TZ1996PTC006849

Company & Directors' Information:- G. O. STEEL PRIVATE LIMITED [Active] CIN = U27100PB2007PTC031033

Company & Directors' Information:- INDIA IRON AND STEEL CORPORATION LIMITED [Active] CIN = U27106DL2006PLC149653

Company & Directors' Information:- CHEMICAL CORPORATION OF INDIA LIMITED [Active] CIN = U26944WB1996PLC081850

Company & Directors' Information:- C P S STEEL INDIA PRIVATE LIMITED [Active] CIN = U27104TZ2003PTC010552

Company & Directors' Information:- J M G STEEL PRIVATE LIMITED [Strike Off] CIN = U27105BR1992PTC004985

Company & Directors' Information:- J. J. IRON AND STEEL PRIVATE LIMITED [Active] CIN = U27106MH2008PTC188056

Company & Directors' Information:- H L STEEL PVT LTD [Active] CIN = U27107AS1992PTC003726

Company & Directors' Information:- K V M STEEL PRIVATE LIMITED [Active] CIN = U29141DL1988PTC031248

Company & Directors' Information:- J D IRON PRIVATE LIMITED [Active] CIN = U51420DL1996PTC079084

Company & Directors' Information:- K STEEL PRIVATE LIMITED [Strike Off] CIN = U27104JH1973PTC000998

Company & Directors' Information:- S P IRON PRIVATE LIMITED [Active] CIN = U27106DL2005PTC136441

Company & Directors' Information:- R. J. STEEL PRIVATE LIMITED [Active] CIN = U28112MH2009PTC193047

Company & Directors' Information:- M M STEEL PRIVATE LIMITED [Active] CIN = U27107MH2001PTC131270

Company & Directors' Information:- A M R IRON AND STEEL PRIVATE LIMITED [Active] CIN = U27100MH2003PTC140824

Company & Directors' Information:- B L STEEL PVT LTD [Active] CIN = U51909WB1981PTC034021

Company & Directors' Information:- R K G STEEL PRIVATE LIMITED [Active] CIN = U27109DL2004PTC128852

Company & Directors' Information:- V B STEEL PRIVATE LIMITED [Active] CIN = U28112MH2010PTC211691

Company & Directors' Information:- I B STEEL COMPANY PRIVATE LIMITED [Strike Off] CIN = U28910MH2010PTC211344

Company & Directors' Information:- Y D STEEL PRIVATE LIMITED [Strike Off] CIN = U27109WB1997PTC086155

Company & Directors' Information:- J S C STEEL PRIVATE LIMITED [Active] CIN = U27106UP2013PTC061568

Company & Directors' Information:- S. M. STEEL PRIVATE LIMITED [Active] CIN = U51101MH2013PTC239811

Company & Directors' Information:- ARUNACHAL IRON AND STEEL CO PVT LTD [Strike Off] CIN = U27107AR1998PTC005462

Company & Directors' Information:- K L IRON AND STEEL PRIVATE LIMITED [Active] CIN = U27310UP2012PTC051496

Company & Directors' Information:- R K P STEEL LTD [Active] CIN = L27109WB1980PLC033206

Company & Directors' Information:- M K IRON PRIVATE LIMITED [Active] CIN = U27109CH1997PTC019501

Company & Directors' Information:- C P STEEL PRIVATE LIMITED [Active] CIN = U27100WB2008PTC127447

Company & Directors' Information:- A. K. J. STEEL PRIVATE LIMITED [Active] CIN = U28112WB2010PTC144880

Company & Directors' Information:- J P IRON AND STEEL LTD [Active] CIN = U27106PB1994PLC014838

Company & Directors' Information:- C D STEEL PVT LTD [Under Liquidation] CIN = U27109WB1981PTC034340

Company & Directors' Information:- P P IRON & STEEL PVT LTD [Active] CIN = U27109WB2005PTC106080

Company & Directors' Information:- G K IRON AND STEEL COMPANY LIMITED [Active] CIN = U13100KA2005PLC065824

Company & Directors' Information:- T M S STEEL PRIVATE LIMITED [Strike Off] CIN = U02710TZ1996PTC007498

Company & Directors' Information:- O P G IRON & STEEL PRIVATE LIMITED [Active] CIN = U27109WB2005PTC103315

Company & Directors' Information:- P M R STEEL PRIVATE LIMITED [Active] CIN = U51102DL2003PTC122675

Company & Directors' Information:- C T STEEL PVT LTD [Active] CIN = U27109WB2005PTC106634

Company & Directors' Information:- P G STEEL PVT LTD [Strike Off] CIN = U24111AS1998PTC005409

Company & Directors' Information:- A AND S STEEL PRIVATE LIMITED [Active] CIN = U63090DL1987PTC027835

Company & Directors' Information:- A. G. IRON & STEEL PRIVATE LIMITED [Active] CIN = U27310WB2008PTC123843

Company & Directors' Information:- J S STEEL PRIVATE LIMITED [Active] CIN = U52190CT1978PTC001432

Company & Directors' Information:- U M STEEL PRIVATE LIMITED [Strike Off] CIN = U27209TN1986PTC013670

Company & Directors' Information:- E & G STEEL INDIA PRIVATE LIMITED [Strike Off] CIN = U28113PN2009PTC134643

Company & Directors' Information:- L N STEEL PRIVATE LIMITED [Active] CIN = U27310WB2007PTC118206

Company & Directors' Information:- K. D. W. STEEL PRIVATE LIMITED [Active] CIN = U28910UP2011PTC043976

Company & Directors' Information:- R. N. STEEL PRIVATE LIMITED [Active] CIN = U27100WB2007PTC116588

Company & Directors' Information:- P & S PROCESSING PRIVATE LIMITED [Active] CIN = U37100DL2011PTC213392

Company & Directors' Information:- P M STEEL PRIVATE LIMITED [Active] CIN = U27105MP1982PTC001915

Company & Directors' Information:- M R STEEL (INDIA) PRIVATE LIMITED [Active] CIN = U27100TG2013PTC088808

Company & Directors' Information:- C K STEEL PVT LTD [Active] CIN = U29150WB1975PTC030259

Company & Directors' Information:- G R IRON & STEEL PVT LTD [Active] CIN = U51909WB1991PTC053653

Company & Directors' Information:- H P IRON PRIVATE LIMITED [Active] CIN = U27100DL2009PTC191318

Company & Directors' Information:- A M Q STEEL PRIVATE LIMITED [Strike Off] CIN = U27310UP2012PTC053823

Company & Directors' Information:- R. B. FABRICATION PRIVATE LIMITED [Active] CIN = U34300WB2011PTC162019

Company & Directors' Information:- D S B FABRICATION PRIVATE LIMITED [Active] CIN = U28112DL2005PTC134236

Company & Directors' Information:- N. M. PROCESSING PRIVATE LIMITED [Active] CIN = U17299WB2019PTC234072

Company & Directors' Information:- K STEEL & COMPANY PVT LTD [Strike Off] CIN = U51909WB1991PTC053960

Company & Directors' Information:- D A IRON AND STEEL COMPANY PVT LTD [Strike Off] CIN = U27103PB1994PTC014497

Company & Directors' Information:- N S STEEL PVT LTD [Strike Off] CIN = U27106PB1980PTC004266

Company & Directors' Information:- P S IRON AND STEEL PRIVATE LIMITED [Active] CIN = U51909PB2000PTC023340

Company & Directors' Information:- THE CHEMICAL CORPORATION OF INDIA LTD [Strike Off] CIN = U24100WB1937PLC009182

Company & Directors' Information:- A D R CHEMICAL LTD [Strike Off] CIN = U24293WB1977PLC030860

Company & Directors' Information:- M. L. IRON PRIVATE LIMITED [Active] CIN = U27101DL2011PTC220421

Company & Directors' Information:- P K IRON PVT LTD [Strike Off] CIN = U34300WB1981PTC034415

Company & Directors' Information:- R C STEEL PVT LTD [Strike Off] CIN = U28112AS1980PTC001811

Company & Directors' Information:- K S CHEMICAL PRIVATE LIMITED [Strike Off] CIN = U24100MH1999PTC121231

Company & Directors' Information:- M K G STEEL PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC066480

Company & Directors' Information:- P D STEEL PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC038426

Company & Directors' Information:- A K STEEL PVT LTD [Strike Off] CIN = U99999DL1961PTC003566

Company & Directors' Information:- H S P STEEL PRIVATE LIMITED [Strike Off] CIN = U27100MH2013PTC242983

Company & Directors' Information:- R B R STEEL PRIVATE LIMITED [Active] CIN = U51103PB2013PTC037791

Company & Directors' Information:- D H STEEL PRIVATE LIMITED [Strike Off] CIN = U27109RJ2012PTC039742

Company & Directors' Information:- R A STEEL PRIVATE LIMITED [Active] CIN = U51909MH2014PTC253625

Company & Directors' Information:- V M IRON PRIVATE LIMITED [Strike Off] CIN = U51909PN2012PTC142963

Company & Directors' Information:- Y R P STEEL FABRICATION PRIVATE LIMITED [Active] CIN = U28999UP2013PTC061127

Company & Directors' Information:- K M D IRON & STEEL PRIVATE LIMITED [Strike Off] CIN = U52300UP2013PTC055973

Company & Directors' Information:- K P R STEEL FABRICATION PRIVATE LIMITED [Active] CIN = U27106DL2005PTC136934

Company & Directors' Information:- D N IRON AND STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL2004PTC126698

Company & Directors' Information:- N. V. STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL2009PTC186541

Company & Directors' Information:- R G A STEEL & FABRICATION PRIVATE LIMITED [Under Process of Striking Off] CIN = U28113DL2012PTC243027

Company & Directors' Information:- L S STEEL FABRICATION PRIVATE LIMITED [Strike Off] CIN = U28939DL2012PTC239913

Company & Directors' Information:- K. D. STEEL PRIVATE LIMITED [Strike Off] CIN = U28939DL2012PTC244467

Company & Directors' Information:- A K FABRICATION PRIVATE LIMITED [Active] CIN = U17291DL2007PTC159807

Company & Directors' Information:- T S FABRICATION PVT LTD [Strike Off] CIN = U18101DL2005PTC143430

Company & Directors' Information:- R K V STEEL FABRICATION PRIVATE LIMITED [Active] CIN = U74899DL2006PTC144313

Company & Directors' Information:- STEEL INDIA PRIVATE LIMITED [Strike Off] CIN = U00349KA1958PTC001309

Company & Directors' Information:- IRON & STEEL PROCESSING INDIA PVT LTD [Strike Off] CIN = U28939WB1954PTC021839

Company & Directors' Information:- VERSUS IRON AND STEEL PRIVATE LIMITED [Strike Off] CIN = U27109MH1997PTC109497

Company & Directors' Information:- STEEL CO PVT LTD [Strike Off] CIN = U51109WB1947PTC015981

Company & Directors' Information:- A and B Chemical Corporation [Active] CIN = F06253

    Appeal No. E/365 of 2008 in-Original No. 04/Commr/ADJ/CE/DIB/08 & Order No. FO/76905 of 2018

    Decided On, 14 November 2018

    At, Customs Excise Service Tax Appellate Tribunal East Regional Bench Kolkata

    By, THE HONOURABLE MR. P. K. CHOUDHARY
    By, JUDICIAL MEMBER & THE HONOURABLE MR. V. PADMANABHAN
    By, TECHNICAL MEMBER

    For the Appellant: H.S. Abedin, AC(AR). For the Respondent: None.



Judgment Text

Per Bench:

1. The present appeal has been filed by the Revenue against the Orderin-Original No.04/Commr/ADJ/CE/DIB/08 dated 07.05.2008. The respondent has a factory at Itanagar, Arunachal Pradesh. During the course of verification by the Departmental Authorities it was noticed that they were manufacturing Thinner falling under Tariff Sub-heading No.38140010 of the schedule to the Central Excise Tariff Act, 1985. It was further found that the respondent has never approached the department for registration of their factory and for payment of Central Excise duty. Investigation by the department was concluded with the issue of show cause notice dated 02.08.2007 alongwith corrigendum dated 10.09.2007. Show cause notice was finalized with the issue of the impugned order. The adjudicating authority determined the value of the goods manufactured and allegedly cleared clandestinely by the respondent in terms of the Central Excise Valuation Rules, 2000. He ordered payment of central excise duty for the period August, 2003 to June, 2006. However, keeping in view the fact that the respondent’s factory was situated in the North East of India where Area Based Exemption from payment of duty was available, the adjudicating authority refrained from imposing penalty and also payment of interest. This order is being challenged by Revenue in the present appeal.

2. None is present today on behalf of the respondent. None was also present on earlier dates of hearing i.e. 16.05.2018 and 05.10.2018. Notices also not received back undelivered.

Under the circumstances we are of the view that the present appeal which has been filed as early as 2008, cannot be kept pending endlessly. Hence, the case is taken up for disposal. Shri H.S.Abedin, AC(AR) is present on behalf of the Revenue.

3. Ld. DR argued the grounds which are summarized as follows;

i) The adjudicating authority appears to have cited the wrong provision of law for confirmation of the duty demand against the respondent. Instead of upholding the demand under Section 11A of the Central Excise Act, 1944, he has cited the Central Excise Valuation Rules, 2000.

ii) Since the respondent has manufactured goods and cleared clandestinely without registration and without payment of Central Excise Duty, the ld. DR submitted that the excise duty payable will be recoverable alongwith interest. Further, in the circumstances of the case he reiterated the ground that the penalty under Section 11AC will also be liable to be paid in view of the fact that the adjudicating authority has upheld the demand for the period of five years on the basis of the show cause notice issued invoking the present clause.

4. We have considered the case records carefully. The adjudicating authority has brought out the fact that the respondent has set up a factory in Arunachal Pradesh, but has not bothered to take registration from jurisdictional Central Excise Authorities. Even though the area where the respondent’s factory is located falls within the Area Based Exemption under the Central Excise Notification No.32-33/99-CE dated 08.07.1999, it is incumbent on the respondent to complete formalities specified in the Notification and claim the benefit of such Area Based Exemption. In the absence of such course of action, the central excise duty becomes payable on the goods manufactured and cleared by the respondent.

5. The adjudicating authority has determined the value of the goods cleared during the disputed period and has arrived at the central excise duty payable and demanded the same. We note that he appears to have cited the wrong legal provision for demand of the same. The Order of the adjudicating authority is modified to the extent that the demand is confirmed under Section 11A of the Central Excise Act, 1944.

6. Since the central excise duty has been held as payable, and the same has not been paid, the interest applicable under Section 11AB will also required to be paid by the respondent.

7. The adjudicating authority has refrained from imposing penalty under Section 11AC. Show cause notice proposed not only demand of central excise duty and interest but also imposition of penalty. We note that the respondent has not bothered to complete the central excise formalities, such as registration and claim the benefit of the Notification No.32-33/99-CE (supra) and

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hence became liable to payment of central excise duty. In the fact and circumstance of the case the conduct of the respondent is to be viewed as suppression of facts and hence the penalty under Section 11AC will also be liable to be paid. The adjudicating authority has already extended the benefit of cenvat credit subject to submission of necessary documents evidencing the claim and the same is not interfered with. 8. In the result, the appeal filed by the revenue is allowed.
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