2023 (2) TMI 1201 - HC - Central Excise

Effect of notifications - effective date of the two Notifications No.22/2014- CE dated 12.11.2014 and 24/2014-Ce dated 02.12.2014 issued on 12.11.2014 and 02.12.2014 is in consonance with section 5A(5a) of the Central Excise Act, 1944 or not - payment of duty for the month of December, 2014 and January, 2015 by 6th January, 2015 and 6th February, 2015 in terms of Rule 8 of the Central Excise Rules, 2002 against clearance made on 12.11.2014 and 02.12.2014. HELD THAT - There is not labour much to find an answer to this issue as the Ahmedabad Bench of the Tribunal in M/S. INDIAN OIL CORPORATION LIMITED (IOCL) BARAUNI REFINERY VERSUS COMMISSIONER OF CENTRAL EXCISE, PATNA 2022 (6) TMI 1438 - CESTAT KOLKATA has considered elaborately this issue in the assessee s own case pertaining to the very same two notifications and has come to a conclusive finding that the notifications cannot be applied to the case of the assessee and they are entitled for refund. Further, in the cases on hand the revenue has accepted the impugned order and by orders dated 26.10.22 has granted refund. Inasmuch as the fact that the notifications were published only on 22.11.2014 and 11.12.2014, the same would be the date on which the notifications came into force and, therefore, the finding recorded by the adjudicating authority and the first Appellate Authority that the notifications came into effect on 11.12.2013 is factually incorrect. The appeals are dismissed and the substantial questions of law are answered against the revenue.

Summary

Issues:
1. Effective date of Notifications No.22/2014-CE and 24/2014-CE.
2. Payment of duty by the respondent for December 2014 and January 2015.

Analysis:

Issue 1: Effective date of Notifications No.22/2014-CE and 24/2014-CE
The appeals were filed by the revenue under Section 35G of the Central Excise Act 1944 challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal. The revenue questioned the effective date of Notifications No.22/2014-CE and 24/2014-CE, issued on 12.11.2014 and 02.12.2014 respectively, under Section 5A(5a) of the Central Excise Act, 1944. The Ahmedabad Bench of the Tribunal had previously ruled that the notifications were effective from the date of publication, i.e., 22.11.2014 and 11.12.2014 respectively. The revenue accepted this ruling and granted refunds. The notifications were only published on 22.11.2014 and 11.12.2014, and not issued earlier as claimed by the revenue. The respondent/assessee conducted a search confirming the publication dates, leading to the conclusion that the notifications came into effect only upon publication. Consequently, the Court dismissed the appeals, upholding the Tribunal's decision.

Issue 2: Payment of duty by the respondent for December 2014 and January 2015
The second issue revolved around the payment of duty by the respondent for goods cleared in December 2014 and January 2015. The revenue questioned whether the duty payment made by the respondent by 6th January 2015 and 6th February 2015, against clearances made on 12.11.2014 and 02.12.2014, complied with the Notifications No.22/2014-CE and 24/2014-CE. The Court reiterated that the notifications were effective from their publication dates and not the date of issuance. As the revenue had already implemented the Tribunal's order and granted refunds to the respondent, the Court found no grounds for the revenue to challenge the appeals further. Therefore, the Court dismissed the appeals, answering the substantial questions of law against the revenue.

In conclusion, the High Court of Calcutta upheld the Tribunal's decision, emphasizing the importance of the publication dates of notifications for determining their effective date. The Court's detailed analysis and reliance on previous rulings ensured a fair and just resolution to the legal dispute at hand.