The Commissioner vs. M/S. Lokesh Machines Limited
Held
The Court held that the ground raised by the appellant regarding the contravention of Rule 8(3A) of the Central Excise Rules, 2002, was not sustainable. This was based on a series of decisions by the High Court of Gujarat, Punjab and Haryana, Madras, Bombay, and this very Court (in CEA No. 17 of 2020), which had declared Rule 8(3A) as ultra vires and unconstitutional. Consequently, the appeal failed on this ground. Regarding the prayer for remand, the Court noted that the appellant had voluntarily withdrawn their rectification application. Since the appeal was dismissed on the primary ground, the Court found no merit in the prayer for remand. However, the Court reserved the right of the appellant to move an appropriate application before the concerned authority for reviving the rectification application, as it was not dealt with on merits. The appeal was rejected, and no order as to costs was made.
Facts
The Commissioner of Customs, Central Excise and Service Tax, Hyderabad (now Commissioner of Central Tax, Central Excise and Service Tax, Medchal GST Commissionerate) filed an appeal before the High Court of Telangana against an order dated October 28, 2019, passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Regional Bench, Hyderabad. The appeal was filed under Section 35-H of the Central Excise Act, 1944, read with transitional provisions of Section 142 of the CGST Act. The Department had initially moved an application for rectification of mistake regarding excess excise duty paid by the respondent, M/s. Lokesh Machines Limited, but withdrew it later in light of the present appeal. The CESTAT's order was challenged on grounds that it contravened Rule 8(3A) of the Central Excise Rules, 2002. The amount in dispute is not specified.
Key Issues
1. Whether the finding of the CESTAT was in contravention to the provisions of Rule 8(3A) of the Central Excise Rules, 2002? The appellant contended that the CESTAT's order was in contravention of Rule 8(3A). The respondent did not present arguments on this specific issue as recorded by the Court. 2. Whether the matter should be remanded for verification and proper order on the rectification application? The appellant prayed for remand, stating they had withdrawn their rectification application due to the filing of the present appeal. The respondent did not present arguments on this specific issue as recorded by the Court.
Sections Cited
Section 35-H, Section 142, Rule 8(3A)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD MONDAY ,THE SIXTH DAY OF NOVEMBER TWO THOUSAND AND TWENTYTHREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N,TUKARAMJI CENTRAL EXCISE APPEAL NO: 16 OF 2020 Between: The Commissioner, Customs, Central Excise and Service Tax, Hyderabad- lV Commissionerate, Posneft Bhavan,Tilak Road,Ramkoti, Hyderabad- 500 001 (Presently the Commissioner of Central Tax, Central Excise and Service Tax, Medchal GST Commissionerate, H.No 11-4-649/8 Lakdikapul, Hyderabad - 500 004) ...APPELLANT AND M/s. Lokesh Machines Limited, Plot No.41, lDA, Balanagar, Hyderabad, Telangana StAtC ...RESPONDENT Appeal is filed under Section 35-H of the Central Excise Act, 1944 read with miscellaneous transitional provisions under Section 142 of CGST Act against the order of the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench, Hyderabad in Final Order No: 30806 12019 in Appeal No. 26176 I 2013 Dated 23-10-2019 preferred against the order in Appeal No. E12617612O13 arising out of Order in Original No. 03/2013 - Adjn ( Commr) CE dated 28-02-2013 on the file of the Commissioner Hyderabad -lV Commissionerate.
Counsel
The judgment continues below.
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