Commissioner Of CGST And Cx Haldia Commissionerate vs. M/S Indan Oil Corportion Limited Refinery Division

Facts

The Commissioner of CGST & CX., Haldia Commissionerate (appellant/revenue) filed appeals before the Calcutta High Court challenging the order of the Customs, Excise and Service Tax Appellate Tribunal (Tribunal). The Tribunal had allowed five appeals filed by M/s. Indian Oil Corporation Limited (respondent/assessee), but the revenue preferred appeals only in respect of two of those orders. The dispute pertains to the effective date of two notifications, No. 22/2014-CE dated 12.11.2014 and No. 24/2014-CE dated 02.12.2014, and whether the duty payments made by the respondent for December 2014 and January 2015 were covered by these notifications. The respondent sought a refund based on these notifications.

Held

The Court held that the effective date of the notifications is the date of their publication in the Gazette, not the date of their issue. The Court referred to a decision by the Ahmedabad Bench of the Tribunal in the assessee's own case concerning the same notifications, which held that the notifications are effective from their publication dates (22nd November 2014 for Notification No. 22/2014 and 11th December 2014 for Notification No. 24/2014). The revenue did not dispute this factual position, especially since the Ahmedabad Tribunal's order was given effect to, and refunds were ordered. Furthermore, the revenue itself had implemented the impugned order by granting refunds to the assessee by an order dated 26.10.2022. This action by the revenue precluded them from pursuing the present appeal. The Court found the finding of the adjudicating and first appellate authorities that the notifications came into effect on 11.12.2013 to be factually incorrect. Therefore, the substantial questions of law were answered against the revenue. The appeals were dismissed.

Key Issues

1. Whether the effective date of Notification No. 22/2014-CE dated 12.11.2014 and Notification No. 24/2014-CE dated 02.12.2014 is in consonance with Section 5A(5a) of the Central Excise Act, 1944? (Petitioner/Revenue's contention: The effective date should be the date of issue of the notification. Respondent/Assessee's contention: The effective date is the date of publication in the Gazette. The court needs to determine the correct effective date based on statutory provisions and established practice). 2. Whether the payment of duty by the respondent for December 2014 and January 2015, made on 6th January 2015 and 6th February 2015 respectively, in terms of Rule 8 of the Central Excise Rules, 2002, against clearances made on 12.11.2014 and 02.12.2014, is covered under Notification No. 22/2014-CE dated 12.11.2014 and Notification 24/2014-CE dated 02.12.2014? (This issue is contingent on the resolution of the first issue regarding the effective date of the notifications).