2023 (7) TMI 1422 - AT - Central Excise

Requirment of appellant to make the pre-deposit when the manufacturer of molasses has paid the entire excise duty - HELD THAT - When the show cause notice itself refers to the various invoices it will be appropriate in the facts and circumstances of the case to direct the appellant to produce all the invoices before the Assistant Commissioner concerned within in a period of three weeks from today. The Assistant Commissioner shall either examine the same himself or require the Range Superintendent to examine the document. A report may thereafter be submitted within a further period of three weeks. Requirement for the official translation of documents - HELD THAT - The appellant prays for and is granted six weeks time to bring on record the official translation of the documents. List on September 04 2023.

Summary

Issues:
1. Requirement of pre-deposit by the appellant.
2. Liability of excise duty on procuring molasses from a khandsari unit.
3. Evidence of payment of excise duty by the suppliers.
4. Direction to produce all invoices for examination.
5. Official translation of documents.

Analysis:
1. The appellant argued that as the manufacturer of molasses had paid the excise duty, they should not be required to make a pre-deposit. However, the Commissioner, in the impugned order, held that under rule 4(2) of the Central Excise Rule, 2002, the person procuring molasses from a khandsari unit is liable to pay the excise duty, and the appellant failed to provide evidence to prove otherwise.

2. The Commissioner found that the appellant did not submit any evidence to show that the molasses were procured from a unit other than a khandsari unit. Additionally, there was no evidence presented to establish that the suppliers had paid the excise duty. The appellant disputed this finding and referred to a document related to purchase invoices of molasses, showing excise duty payment by the manufacturer.

3. To address the lack of evidence, the Tribunal directed the appellant to produce all the invoices before the Assistant Commissioner within three weeks for examination. The Assistant Commissioner or the Range Superintendent would review the documents and submit a report within a further three weeks. This step was deemed necessary to verify the excise duty payment claims made by the appellant.

4. Another issue raised was the requirement for the official translation of documents. The appellant requested six weeks to provide the official translation of the documents, which was granted. The case was scheduled for the next hearing on September 04, 2023, allowing time for the necessary actions to be taken in compliance with the Tribunal's directions.