2018 (3) TMI 2038 - AT - Central Excise

Recovery of erroneous refund - availing benefit of exemption N/N. 33/99-CE dated 08.07.1999 as amended by submitting fabricated documents during the period from July 1999 to May 2002 - substantial expansion of 25% or more of the installed capacity - HELD THAT - On perusal of the Grounds of Appeal, it is found that it appears from the Order of the CESTAT, that the Grounds of Appeal mentioned in the said Revision Appeal has not been considered by the Adjudicating Authority. But, the said CESTAT Order has been accepted and relied upon by the Adjudicating authority. The Learned Authorised Representative of the Revenue states that the Adjudicating authority should have considered the Grounds of Appeal of the Revision Order passed by the Board. The contention of the Learned Authorised Representative cannot be accepted for the reasons that this Tribunal had decided the issue after considering the Revision Order. There are no reason to interfere with the Order of the Adjudicating authority - appeal of Revenue dismissed.

Summary

Issues involved:
The judgment involves the issue of whether the assessee availed the benefit of exemption notification by submitting fabricated documents and erroneously availed the refund, leading to a Show Cause Notice being issued. The appeal was filed by the Revenue challenging the decision of the Learned Commissioner who dropped the proceedings under the Show Cause Notice.

Summary of Judgment:

Issue 1: Allegation of availing exemption through fabricated documents
The assessee, engaged in the manufacture of Aerated Water, was alleged to have availed the benefit of exemption notification by submitting fabricated documents. The CESTAT Kolkata observed that the Revenue contended there was no substantial expansion in the installed capacity of the industrial unit, as required for eligibility under the notification. The CESTAT upheld the decision of the Adjudicating authority to drop the proceedings, stating that the Revision Order had been considered, and there was no reason to interfere with the decision. The appeal filed by the Revenue was dismissed.

Key Points:
- Show Cause Notice issued alleging submission of fabricated documents for availing exemption.
- CESTAT observed lack of substantial expansion in installed capacity as required for eligibility.
- Adjudicating authority's decision upheld based on consideration of Revision Order.
- Appeal by Revenue dismissed, no interference with Adjudicating authority's decision.

Conclusion:
The judgment upheld the decision of the Adjudicating authority to drop the proceedings under the Show Cause Notice, based on the lack of substantial expansion in the installed capacity as required for availing the exemption notification. The appeal filed by the Revenue was dismissed by the CESTAT Kolkata.