Principal Commissioner Of Customs vs. M/S.Osi Systems Private Limited
Facts
The Principal Commissioner of Customs, Hyderabad (Appellant) filed an appeal against an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT's order upheld a prior order by the Commissioner of Customs, Central Excise (Appeals), which in turn confirmed an order by the Assistant Commissioner of Customs. The dispute concerns the availability of CENVAT refund under notification 10/2007 when goods are collected on payment of appropriate VAT. The Appellant contended that the CESTAT and the lower authorities failed to consider the Supreme Court's judgment in Collector of C.Ex., Vadodara v. Dhiren Chemical Industries. The Respondent is M/s. OSI Systems Private Limited.
Held
The High Court held that the appeal filed by the Principal Commissioner of Customs lacked merit. The Court noted that the CESTAT, in its order, relied on two of its own recent decisions: Gazal Overseas v. Commissioner of Customs, New Delhi (dated 02.09.2015) and Malhotra Imports and Exports Corporation v. Commissioner of Customs, Chennai-II (dated 03.07.2017). The CESTAT decision in Malhotra Imports and Exports Corporation had, in turn, considered the Supreme Court's judgment in Dhiren Chemical Industries. Since the Appellant did not demonstrate that these CESTAT decisions were challenged or held to be bad in law, the High Court found no reason to interfere with the CESTAT's order. The CESTAT also relied on CBEC Circular No. 6 of 2008. The Court concluded that the impugned order was neither bad in law nor unreasonable. The appeal was therefore rejected. No costs were awarded.
Key Issues
1. Whether CENVAT refund under notification 10/2007 is available when goods are collected on payment of appropriate VAT, in light of the Supreme Court's decision in Collector of C.Ex., Vadodara v. Dhiren Chemical Industries? (Question of law) Contentions: Petitioner/Appellant: Argued that the CESTAT and lower authorities erred by not considering the Supreme Court's judgment in Dhiren Chemical Industries. They implied that this judgment should have led to a different outcome. Respondent/State: The judgment does not explicitly record arguments made by the Respondent. However, the Court's reasoning indicates that the CESTAT's decision was based on its own prior rulings and a CBEC circular.
Sections Cited
Section 130
AI-generated summary — verify with the full judgment below
[ 3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY,THE FIRST DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETW CENTRAL EXCISE APPEALS NO: 24 OF 2019 Between: Principal Commissioner of Customs, Hyderabad, 7th Floor, GST Bhavan, L.B Stadium Road, Basheerbagh, Hyderabad- 500004. APPELLANT/APPELLANT AND M/s.OSl Systems Private Limited, 4th Floor, Orion Block, Plot No. 17, Software Units Layout, Madhapur, Hyderabad- 500 081. ...RESPONDENT/RESPONDENT Appeal under Section 1 30 of the Customs Act, 1 962 against the final order No. A./31419/2018 in Customs Appeal No. Cl3O788l2O18 on the file of the Customs, Excise and Service Tax Appellate tribunal, Regional Bench, Hyderabad Dated 05.11.2018, Preferred against the Order-in-Appeal No. HYD- CUS-000-APP-157-17 -18 dated 27.O3.2018, on the file of the Commissioner of Customs, Central Excise (Appeals), Hyderabad, Preferred against the Order-in- Original No. 2OS|2O17-ACC(R), dated 27.09.2017, on the file of the Assistant Commissioner of Customs, Air Cargo Complex, Hyderabad daled 27.09.2017.
Counsel for the Appellant :SRl. A R
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