2015 (2) TMI 923 - AT - Customs

Merchant Overtime Tax Charges (MOT) - whether the applicant is required to pay the MOT charges (Merchant Overtime Tax) for the services rendered by the Departmental Officers (as Customs Officers) during office hours for any Customs examination/work is being done in their factory/ware house - Held that - Larger Bench of the Tribunal in the case of CCE Rajkot Vs Reliance Industries Ltd. 2013 (10) TMI 675 - CESTAT AHMEDABAD , following the decision of Hon ble Delhi High Court in the case of Sigma Corporation Ltd. 2013 (4) TMI 649 - DELHI HIGH COURT , on the identical issue, held that in view of the decision of Hon ble Delhi High Court, the issue referred for constitution of Larger Bench, does not survive. The issue referred to Larger Bench is whether there is requirement for payment of Merchant Overtime Charges (MOT) towards services rendered by Central Excise Officers during working hours, in respect of services pertaining to supervision of boarding of goods exported through containers, i.e. levy of fees the under Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998, these Regulations having been issued in exercise of powers under Sections 157 and 158 of the Customs Act, 1962 read with para 1.2, part II, Chapter 18 of the C.B.E. & C. Excise Manual of supplementary instructions. - Respectfully following the decision of Hon ble Delhi High Court and Larger Bench of the Tribunal, we find that the impugned orders cannot be sustained. Accordingly, the impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
1. Early hearing application for appeal.
2. Payment of Merchant Overtime Tax (MOT) charges for services by Customs Officers during office hours.

Analysis:
1. The applicant filed an application for early hearing of the appeal, citing the issue being covered by the decision of the Hon'ble Delhi High Court followed by the Larger Bench of the Tribunal. The Tribunal decided to proceed with the appeal despite the Revenue representative's submission against deciding it at the early hearing stage due to Board instructions.

2. The main issue revolved around whether the applicant must pay MOT charges for services provided by Departmental Officers during office hours for any Customs examination/work in their factory/warehouse. The Tribunal referred to the Hon'ble Delhi High Court's decision in CCE Vs Sigma Corporation Ltd, which clarified that no fee is payable for work done under the supervision of jurisdictional Central Excise Officers during working hours only. The Tribunal dismissed the appeal based on this precedent, emphasizing that the conditions for levying MOT charges were not met in the case at hand.

3. Additionally, the Tribunal cited the decision of the Larger Bench in CCE Rajkot Vs Reliance Industries Ltd., which aligned with the Hon'ble Delhi High Court's ruling in the Sigma Corporation Ltd. case. This Larger Bench decision confirmed that the issue of payment of MOT charges for services by Central Excise Officers during working hours did not stand after the Delhi High Court's judgment. Consequently, the Tribunal set aside the impugned order and allowed the appeal, disposing of the early hearing application.