2004 (8) TMI 501 - AT - Central Excise

Summary

Issues: Availability of benefit of cum-duty price rule in determination of duty liability.

In this case, the appellants filed an appeal against the impugned order-in-appeal regarding the availability of the benefit of the cum-duty price rule in determining duty liability. The authorities below did not apply this rule, stating that the remand order of the Tribunal did not specifically direct its application. The appellants argued that they were entitled to this benefit under the law. They cited legal precedents to support their claim. The learned SDR maintained the correctness of the impugned order. The Tribunal considered both arguments and reviewed the case records. It was established that the appellants were independent processors engaged in cotton fabric processing and were initially paying duty on an ad valorem basis. They were later brought under the Compound Levy Scheme but disputed their liability under this scheme. The Tribunal had previously remanded the matter to the Commissioner for re-determination of duty and examination of Modvat credit availability. The appellants requested the benefit of reduction of duty element from cum-duty prices during re-determination, which was denied by the adjudicating authority citing lack of specific direction in the remand order. However, the Tribunal found this denial legally untenable. Referring to legal precedents, the Tribunal emphasized that any benefit available under the law must be granted to the assessee regardless of specific prayers made during duty liability determination. The Tribunal concluded that the benefit of cum-duty price had been wrongly denied to the appellants and set aside the impugned order. The matter was remanded to the adjudicating authority/Commissioner to quantify the duty after allowing the benefit of the cum-duty price to the appellants, resulting in the disposal of the appeal in favor of the appellants.