2009 (3) TMI 603 - AT - Central Excise

Demand Cess not assessed as per return filed by assessee Demand Notice ex facie appears to be erroneous - the Demand Notice and remand the case to the Assessing Officer to assess the cess in accordance with law

Summary

The appellate tribunal, BEFORE THE TEXTILES COMMITTEE CESS APPELLATE TRIBUNAL, presided over by J. Khosla, heard a case where the Appellants challenged a Demand Notice issued to them for cess payment. The Appellants argued they were not liable to pay any cess as they were not manufacturers of textiles or textile machinery. On the other hand, the Respondent contended that the Appellants had filed a return indicating a cess payable amount of Rs. 0/-, as assessed under the Textiles Committee (Cess) Rules, 1975. The Respondent claimed the Demand Notice was legally valid and the Appellants were obligated to pay the cess. In response, the Appellants argued that the return was filed only after receiving intimation from the Textile Committee and cited a precedent stating that there could be no estoppel against law. After considering the arguments, the tribunal concluded that the cess was not assessed as per the return filed by the Appellants, deeming the Demand Notice erroneous. Consequently, the tribunal set aside the Demand Notice and remanded the case to the Assessing Officer to reassess the cess within three months. The Appeal was partly allowed. This judgment highlights the importance of proper assessment and adherence to legal procedures in cess collection cases.