2016 (11) TMI 405 - AT - Central Excise

Requantification of Demand - Held that - the Commissioner (Appeals) in the impugned order has held that the cakes and pastries manufactured and cleared with the brand name Hot Bread would be chargeable to duty. Further the learned Commissioner finally remanded the matter back to the adjudicating authority on the allegation of the appellant that the entire quantity of sales in the restaurant where the customers eat the food cannot be treated as value of the cakes and pastries with the brand name of Hot Bread - Appeal is allowed by way of remand.

Summary

Issues:
Appeal against remand order for re-quantification of duty demand by lower authorities.

Analysis:
The case involved an appeal against the order of the Commissioner (Appeals) directing re-quantification of duty demand by lower authorities. The appellant, running a Restaurant and Bakery, was involved in selling bakery products along with serving coffee, tea, fruit juices, and ice creams. The dispute arose when Central Excise Officers seized Vanila pastries from a customer carrying a bag with the brand name "Hot Bread." A show-cause notice was issued demanding duty on cakes and pastries. The adjudicating authority confirmed a duty demand and imposed a penalty, considering the entire receipt as cum-duty. The Commissioner remanded the case for de novo adjudication, leading to the present appeal.

The appellant contended that the impugned order violated principles of natural justice and lacked sufficient evidence on the use of the brand name "Hot Bread" restricted to bread items. The Revenue's misunderstanding led to the classification of all products as cakes and pastries, resulting in the duty demand. The case heavily relied on the seizure from one person carrying pastries, lacking proper investigation and quantification by the Revenue.

On the contrary, the Revenue supported the Commissioner's findings and the remand order for re-quantification of the duty demand. The Commissioner held that cakes and pastries with the brand name "Hot Bread" were dutiable, prompting the remand for proper quantification after deducting sales in the restaurant.

Upon careful review, the Tribunal found merit in directing the appellant to approach the lower adjudicating authority for re-quantification of the demand. The appellant was instructed to submit all relevant documents, especially regarding the segregation of products as cakes and pastries, for a speaking order in accordance with the law. The appeal was allowed by way of remand, emphasizing the need for proper quantification based on the evidence presented.

In conclusion, the Tribunal upheld the remand order for re-quantification of duty demand, emphasizing the importance of following due process and presenting substantial evidence in determining the duty liability. The case highlighted the significance of proper investigation and classification of products to ensure accurate assessment of duties, underscoring the principles of natural justice and adherence to legal procedures in excise matters.