2016 (8) TMI 986 - HC - Central Excise

Recovery of central excise duty clearance of sabudana Exemption Notification No.12/2013-CE dated 01.03.2013 - section 11C of the Central Excise Act, 1944 Held that - the Government of India by an order dated 15.03.2016, has rejected the petitioner s request for grant of exemption - prayer sought for in the Writ Petitions become infructuous. Issues raised on grounds of merits issues raised on grounds of limitation Held that - these issues may be left open to be adjudicated upon by the petitioner before the appropriate Forum, on merits as well as on law petition disposed off decided against petitioner.

Summary

Issues:
1. Central excise duty assessment and recovery on Tapioca Sago clearance for a specific period.
2. Invocation of section 11C of the Central Excise Act, 1944 for waiver of duty liability.
3. Exemption from excise duty granted prospectively leading to disputes for the period before the exemption.
4. Rejection of exemption request by the Government of India.
5. Other grounds raised in affidavits regarding merits and limitation for future adjudication.

Analysis:

1. The petitioner, a Tapioca Sago manufacturer, filed Writ Petitions to prevent the assessment or recovery of central excise duty on Sabudana clearance between 1.3.2011 and 28.2.2013 pending the disposal of an application invoking section 11C of the Central Excise Act, 1944 to waive the duty liability. The issue arose post the levy of Excise Duty on Tapioca and its substitutes at 1% after 01.04.2011, leading to representations by the petitioner and others for exemption. The Government granted exemption through Notification No.12/2013-CE dated 01.03.2013, effective prospectively from the same date, creating a gap for the period before the exemption, resulting in notices and legal proceedings.

2. The petitioner, along with others, requested the Government for a Notification under section 11C of the Central Excise Act, 1944, to waive the excise duty on Tapioca Sago for the disputed period. However, during the pendency of the Writ Petitions, the Government rejected the petitioner's exemption request on 15.03.2016, rendering the prayers in the Writ Petitions moot. The Court dismissed the Writ Petitions as infructuous, allowing the petitioner to raise all contentions before the appropriate Forum, including those related to merits and limitations, for future adjudication.

3. The judgment emphasizes the dismissal of the Writ Petitions due to the rejection of the exemption request, leaving the petitioner the opportunity to pursue their claims and arguments before the relevant legal forums. The decision underscores the importance of addressing legal issues comprehensively and through the appropriate channels, ensuring that all grounds are considered and adjudicated upon effectively. The legal process allows for the petitioner to present their case fully, addressing both the exemption request and any other relevant aspects related to the excise duty liability on Tapioca Sago clearance, ensuring a fair and thorough legal resolution.