Central Excise Appeal
2 articles
Credit of Concessional Countervailing Duty on Imported Coal Is Not Cut Down by Excise Conditions: Rajasthan High Court Dismisses Revenue's Appeals Against Hindustan Zinc
A Division Bench of the Rajasthan High Court has refused to read the excise-side restrictions of Rule 3(1)(i) of the CENVAT Credit Rules, 2004 into Rule 3(1)(vii), upholding Hindustan Zinc's credit of concessional additional customs duty on imported steam coal across five demands totalling Rs.51,47,27,714. The reasoning is brief and leans on a Calcutta High Court ruling and a departmental advisory minute, which makes its limits as important as its result.
14 min readDepartmental Knowledge Defeats the Extended Period: Calcutta High Court Quashes a Central Excise Demand Founded on the Assessee's Own Cost Audit Report
Hindalco Industries faced a Central Excise demand of Rs. 6,29,920 built entirely on its own Cost Audit Report, three years after departmental officers had personally witnessed the very stock shortages now called suppression. The Calcutta High Court held the extended period of limitation unavailable: what the proviso to Section 11A requires is a deliberate act of concealment by the assessee, not the mere absence of departmental knowledge, and a demand cannot simultaneously rest on a statutory record and be founded on its suppression.
13 min read