2018 (2) TMI 1013 - AT - Central Excise

SSI exemption - SCN pending for adjudication - Held that - the Appellant s claim for SSI Exemption for the year 2004 - 05 is subject to outcome of the adjudication of show cause notice dt. 20.07.2005. The ld. Consultant has informed us the said SCN dt. 20.07.2005 is pending for adjudication - it is appropriate to remand the case back to the adjudication authority for deciding the eligibility of the Appellant towards SSI Exemption subject to outcome of adjudication of SCN dt. 20.07.2005 - appeal allowed by way of remand.

Summary

Issues:
1. Challenge to demand for duty exceeding SSI Exemption limit for the year 2004-05.
2. Pending show cause notice for trading activity from March 2003 to January 2005 affecting eligibility for SSI Exemption.

Analysis:
1. The Appellant, engaged in manufacturing and sale of excisable goods, challenged the demand for duty in the year 2004-05, contending that their turnover in 2003-04 exceeded the SSI Exemption limit. The Appellant's eligibility for SSI Exemption for 2004-05 hinged on the outcome of a pending show cause notice from July 20, 2005. The Consultant argued that the trading turnover from 2003-04, which was under dispute, should not have been considered in the manufacturing turnover for imposing duty in 2004-05. The unresolved show cause notice was crucial in determining the Appellant's eligibility for SSI Exemption, leading the Tribunal to remand the case to the adjudication authority for a decision based on the outcome of the pending show cause notice from July 20, 2005.

2. The Revenue, represented by the Superintendent, reiterated the findings of the impugned order. The Tribunal carefully evaluated both parties' submissions and acknowledged the Appellant's challenge based on the SSI Exemption limit for 2004-05. Considering the pending show cause notice from July 20, 2005, the Tribunal deemed it appropriate to remand the case to the adjudication authority for a determination of the Appellant's eligibility for SSI Exemption post the resolution of the said show cause notice. The Tribunal's decision to remand the case solely for assessing the duty demand in the current appeal after the adjudication of the pending show cause notice from July 20, 2005, aimed to ensure a fair and accurate determination of the Appellant's liability.

3. The Tribunal, in its final decision pronounced on December 29, 2017, disposed of the appeal by remanding the case back to the adjudicating authority exclusively for the purpose of deciding the duty demand associated with the appeal post the adjudication of the pending show cause notice from July 20, 2005. This comprehensive analysis highlights the significance of the pending show cause notice in determining the Appellant's eligibility for SSI Exemption and the subsequent duty liability for the year 2004-05, underscoring the Tribunal's commitment to a just and thorough adjudication process.