Principal Commissioner Of Customs vs. M/S.O S I Systems Private Limited
Facts
The appeal was filed by the Principal Commissioner of Customs, Hyderabad, against an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT had confirmed an order passed by the Commissioner of Customs (Appeals), which in turn upheld an order by the Assistant Commissioner of Customs. The core issue revolved around whether a refund of Central Value Added Tax (CENVAT) under Notification No. 102/2007 was available when goods were collected on payment of the appropriate rate of VAT. The appellant (Department) contended that the CESTAT failed to consider the Supreme Court judgment in Collector of C.Ex, Vadodara v. Dhiren Chemical Industries. The respondent is M/s. O S I Systems Private Limited.
Held
The High Court held that the appeal filed by the Department lacked merit and was liable to be rejected. The Court found that the CESTAT, in confirming the lower authorities' orders, had relied on two of its own recent decisions: Guzal Overseas v. Commissioner of Customs, New Delhi, and Malhotra Imports and Exports Corporation v. Commissioner of Customs, Chennai-IX. Crucially, the CESTAT's decision in the Malhotra Imports case had already referred to the Supreme Court judgment in Dhiren Chemical Industries. Since the Department had not challenged these CESTAT decisions or demonstrated that they were held to be bad in law, the High Court found no reason to interfere. Furthermore, the CESTAT had also relied on CBEC Circular No. 1/2008, dated 28.04.2008, in light of the Dhiren Chemical Industries judgment. Therefore, the impugned order of the CESTAT was not considered bad in law or unreasonable. The appeal was rejected.
Key Issues
1. Whether CENVAT refund under Notification No. 102/2007 is available when goods are collected on payment of the appropriate rate of VAT, and if the CESTAT's decision on this matter is legally sound. Petitioner's Argument: The appellant (Department) argued that the CESTAT erred by not considering the Supreme Court's judgment in Collector of C.Ex, Vadodara v. Dhiren Chemical Industries. They contended that this omission made the CESTAT's order flawed. Revenue's Argument: The revenue did not present any arguments in the judgment provided. The judgment states, "The Court delivered the following: JUDGMENT" and then proceeds to discuss the appellant's submissions and the Court's reasoning. No specific arguments from the revenue are recorded.
Sections Cited
Section 130
AI-generated summary — verify with the full judgment below
[ 3386 I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE FIRST DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY CENTRAL EXCISE APPEAL No: 37 of 2019 Between: Principal Commissioner of Customs, Hyderabad, 7th Floor, GST Bhavan, L.B.StadiumRoad,Basheerbagh,Hyderabad-500004. ...Appellant AND M/s. O S I Systems Private Limited, 4th floor Orion Block Plot No.17, Software Units Layout Madhapur, Hyderabad - 500 081. ...Respondent Appeal under Section '130 of the Customs Act, 1962 against the final order No. A13142012018 dated 05-11-2018 in Customs Appeal No.C/30789/2018 on the file of Customs Excise and Service Tax Appellate Tribunal, Regional Bench, Hyderabad preferred against the Order-in-Appeal No.HYD-CUS-000-APP-'158-17-18, dated 27.03-2018 on the file of the Commissioner of Customs, Central Excise (Appeals), Hyderabad, preferred against the order in OIO No.14'1l2017-ACC(R) dated.05-06-201 7 on the file of 0.f.,\\ the AssistanT Commissioner of Customs, Air Cargo Complex, Hyderabad.
This Appeal coming on for hearing upon persuing the order of the Appellate Tribunal as w
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.