2024 (11) TMI 5 - AT - Central Excise

Legality of remanding the matter to the original authority - legal authority of Commissioner (Appeals) to remand the matter during the relevant period - HELD THAT - A perusal of the impugned order and the appeal filed before the Commissioner (Appeals) by the appellant in Form-4 shows that the learned authorised representative for the Revenue is correct in her averment. The Commissioner (Appeals), however, also examined this question of deposit of service tax interest. He remarked in paragraph 7 that no mention of the amount claimed and deposited by the appellant was in the order-in-original and, therefore, if the amount had already been deposited and such challans were produced, the service tax already deposited may be adjusted against the demand. Learned counsel for the appellant misunderstood this remark in the impugned order by the Commissioner (Appeals) to mean that the Commissioner (Appeals) has remanded the matter to the original authority. All that the Commissioner (appeals) said in the impugned order is that the order-in-original is upheld and the appeal is rejected - Learned counsel for the appellant misunderstood these remarks which were in favour of the appellant s claim that it had already deposited service tax through some challans and argued that the Commissioner (Appeals) had wrongly remanded the matter to the original authority. The impugned order is correct and proper and calls for no interference - appeal dismissed.

Issues:
1. Challenge to the order of the Commissioner of Customs Central Excise (Appeals) Jaipur.
2. Allegation of illegality in remanding the matter to the original authority.
3. Misunderstanding regarding remand of the matter by the Commissioner (Appeals).
4. Contesting the penalty imposed under section 78 of the Finance Act, 1994.
5. Examination of grounds taken before the Commissioner (Appeals).
6. Deposit of service tax by the appellant and its adjustment against the demand.
7. Misinterpretation of remarks in the impugned order by the Commissioner (Appeals).

Analysis:

1. The judgment concerns an appeal by M/s Navratan Pipe and Profile Ltd. against the order of the Commissioner of Customs Central Excise (Appeals) Jaipur. The appellant challenged the order dated 28.02.2017 passed by the Commissioner, which upheld the original order dated 27.02.2013 by the Assistant Commissioner, Bhiwadi, Alwar.

2. The appellant argued that the Commissioner (Appeals) had no legal authority to remand the matter to the original authority during the relevant period. However, a careful examination revealed that the Commissioner (Appeals) did not remand the matter but upheld the original order. The appellant misunderstood a remark in the order to imply remand, which was clarified in paragraph 8 of the impugned order.

3. The penalty imposed under section 78 of the Finance Act, 1994 was contested by the appellant. However, it was noted that the appellant had not challenged the penalty before the Commissioner (Appeals), leading to no relief or examination on this matter. The penalty was deemed mandatory under the Finance Act, and the Commissioner (Appeals) correctly did not address it due to the lack of contestation.

4. The grounds taken before the Commissioner (Appeals) were examined, revealing that only specific issues were raised in the appeal. The Commissioner (Appeals) appropriately addressed the grounds presented and did not delve into matters not contested by the appellant.

5. The deposit of service tax by the appellant was raised, with the appellant claiming to have deposited the tax through challans. The Commissioner (Appeals) acknowledged this claim and directed that if the amount was deposited, it should be adjusted against the demands, emphasizing the need for producing relevant challans for verification.

6. Misinterpretation of remarks in the impugned order by the Commissioner (Appeals) led to confusion for the appellant. The order was upheld, and the appeal was dismissed, with a clear directive for adjusting any deposited service tax against the demands and providing an opportunity to produce relevant challans for verification.

This detailed analysis addresses the key issues raised in the judgment, providing a comprehensive understanding of the legal proceedings and outcomes.

← Previous Next →