2016 (8) TMI 973 - AT - Central Excise

Appeal for early hearing - issue is of recurring nature - denial of area based exemption Notification No. 50/2003 and issuance of number of subsequent show cause notices - Held that - once the Revenue has taken a stand that appellant is not entitled to said notification benefit, it automatically follows that the Revenue would issue the show cause notices for the subsequent period also. We do not find that why for allowing the application, fact of issuance of show cause notices needs verification by the Commissioner, as sought for by the learned DR. Further, the objection raised by the learned DR is also not found favour with inasmuch as we find that the benefit of notification is a continuation issue and the fact that issuance of subsequent show cause notices makes it a recurring issue, leading to unnecessary litigation. To avoid the same, it is necessary that the disputed legal issue is settled so as to allow the lower authorities to decide the issue in accordance with such declaration of law by the Tribunal. - Early hearing allowed

Summary

Issues:
1. Denial of area-based exemption notification
2. Confirmation of demand for duty amount
3. Issuance of subsequent show cause notices
4. Request for early hearing of the appeal

Analysis:
1. The appellant's appeal pertains to the denial of area-based exemption notification No. 50/2003, resulting in the confirmation of duty amount of approximately ?1.57 crores. The appellant sought early hearing on the grounds of this denial and the issuance of subsequent show cause notices on the same basis. The confirmation of demand covers the period from March 2014 to October 2014.

2. The Revenue, represented by the learned DR, contested the appellant's request for early hearing, citing an appeal filed in March 2016 and expressing concerns about queue jumping. The Revenue also mentioned writing to the Commissioner to verify the issuance of subsequent show cause notices. However, the Tribunal noted the substantial amount involved and the recurring nature of the issue due to the continuous denial of the area-based exemption notification.

3. The Tribunal acknowledged the appellant's assertion that subsequent show cause notices had been issued post-October 2014 on the same grounds of denial of the exemption notification. It emphasized that once the Revenue denies the benefit of the notification, it is expected to issue show cause notices for subsequent periods. The Tribunal found no need for verification by the Commissioner regarding the show cause notices, as the issue was deemed recurring and required resolution to prevent unnecessary litigation.

4. Ultimately, the Tribunal accepted the appellant's request for early hearing to settle the disputed legal issue and provide clarity for lower authorities to decide in accordance with the Tribunal's interpretation. The appeal was scheduled for a hearing on 21.07.2016 to address the denial of the area-based exemption notification and the confirmation of duty amount, aiming to resolve the recurring issue and prevent prolonged litigation.