M/S. R. D. Polyplast PVT. LTD. (Unit-Ii) vs. The Union Of INDIA And 2 Ors.
Held
The Court held that the Demand Notice dated July 27, 2021, could not co-exist with the subsequent order dated September 27, 2023, passed by the Commissioner, Central GST and Central Excise, Dibrugarh. The Commissioner's order fixed the special rate for the actual value addition in respect to plastic bottles and caps manufactured by the Petitioner for the financial years 2009-2010, 2010-2011, 2011-2012, 2012-2013, and 2013-2014. However, a special rate was not fixed for the Financial Year 2014-2015 due to the bar in para 3(i) of Notification No. 20/2007-CE. Consequently, the impugned Demand Notice was set aside and quashed. The Court clarified that this decision would not prevent either party from taking appropriate steps in accordance with the Commissioner's order dated September 27, 2023. No specific issue regarding the validity of the refund itself was decided, nor was the issue for the financial year 2014-2015 fully resolved.
Facts
The Petitioner, M/s. R. D. Polyplast Pvt. Ltd. (Unit-II), challenged a Demand Notice dated July 27, 2021, issued by the Assistant Commissioner, CGST Dibrugarh Division. This notice demanded the deposit of Rs. 22,01,289/- along with interest, which was related to a refund previously granted to the Petitioner. The refund pertained to the period from April 2009 to March 2015. The Petitioner also sought a direction to prevent coercive action until a decision on special rate fixation was made. During the hearing, the Respondent produced an order dated September 27, 2023, from the Commissioner, Central GST and Central Excise, Dibrugarh.
Key Issues
1. Whether the Demand Notice dated July 27, 2021, issued by the Assistant Commissioner, CGST Dibrugarh Division, demanding Rs. 22,01,289/- along with interest, is valid, considering the Petitioner had previously received a refund for the period April 2009 to March 2015? Petitioner's Contention: The Petitioner argued that the Demand Notice should not be enforced, and coercive action should be avoided until the special rate fixation was decided. Revenue's Contention: The Revenue presented an order dated September 27, 2023, from the Commissioner, Central GST and Central Excise, Dibrugarh, which fixed special rates for the Petitioner's manufactured goods for specific financial years. The Revenue did not explicitly argue for the validity of the demand notice but produced the subsequent order.
Sections Cited
Section 3(i) of Notification No. 20/2007-CE, Notification No. 20/2008-CE, Notification No. 38/2008-CE, Central Excise Tariff Act, 1985
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Page No.# 1/3 GAHC010171152021
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/5570/2021 M/S. R. D. POLYPLAST PVT. LTD. (UNIT-II) A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT KHALEEL MARKET THANA CHARALI DIBRUGARH ASSAM AND MANUFACTURING PREMISES AT BEHEATING INDUSTRIAL AREA P.O.-BEHEATING DIST- DIBRUGARH PIN-786004 ASSAM REPRESENTED BY ITS DIRECTOR SRI DILIP BORGOHAIN S/O LATE HEM CHANDRA BORGOHAIN AGED ABOUT 68 YEARS R/O 348 SAMANNAY PATH NEAR MAHAMAYA CHIRRING CHAPORI DIBRUGARH (ASSAM) PIN-786001 VERSUS THE UNION OF INDIA AND 2 ORS. THROUGH THE FINANCE SECRETARY MINISTRY OF FINANCE TO THE GOVT. OF INDIA NORTH BLOCK PARLIAMENT HOUSE NEW DELHI-110001 2:PRINCIPAL COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX AND CENTRAL EXCISE
Page No.# 2/3 DIBRUGARH MILAN NAGAR LANE-F P.O.-C.R. BUILDING DIBRUGARH PIN-786003 ASSAM 3:ASSISTANT COMMISSIONER CGST DIBRUGARH DIVISION CENTRAL GOODS AND SERVICE TAX AND CENTRAL EXCISE DIBRUGARH MILAN NAGAR LANE-F DIBRUGARH PIN-786003 ASSAM For the Petitioner(s)
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