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2011 (1) TMI 1126 - AT - Central ExciseBenefit of exemption denied on various grounds which were not reflected in the Show Cause Notice - SCN discloses that it relate to only one ground namely that the party is not entitled to claim the benefit of Notification No. 6/2006 under Sr. No. 91 thereof retrospectively as the party had already cleared the goods while claiming exemption under Notification No. 108/95 - Merely because it discloses incorrect provision of law while claiming such benefit that could not result in the denial of such benefit to the assessee application is allowed amount claimed under the impugned order is waived till disposal of the appeal
Issues:
- Denial of benefit under Notification No. 6/2006 - Grounds for denial not reflected in Show Cause Notice Analysis: The judgment by the Appellate Tribunal CESTAT, New Delhi addressed the issue of denial of the benefit under Notification No. 6/2006 to the appellant. It was noted that the Show Cause Notice only focused on one specific issue, which was that the appellant had cleared goods claiming exemption under Notification No. 108/95 and was not entitled to claim benefits under Notification No. 6/2006 retrospectively. The Tribunal emphasized that if a party is lawfully entitled to a benefit under a particular statutory provision but mistakenly claims it under another provision, it should not be denied the benefit. Merely citing an incorrect provision while claiming the benefit should not result in the denial of such benefit to the assessee. The Tribunal highlighted that the Show Cause Notice solely revolved around the party not being entitled to claim the benefit of Notification No. 6/2006 retrospectively due to having already cleared goods under a different notification. It was established that the denial of the benefit under Notification No. 6/2006 was not based on any other grounds mentioned in the Show Cause Notice. The Tribunal found that a prima facie case existed for granting total waiver of the amount demanded under the impugned order. Consequently, the Tribunal allowed the application and waived the amount claimed under the impugned order until the disposal of the appeal, ensuring that the appellant was not unfairly penalized for a procedural error in claiming the benefit under the appropriate statutory provision.
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