2026-VIL-1109-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Leviability of duty on Royalty and Stowing Excise Duty collected from customers - Whether central excise duty is leviable on the elements of Royalty and Stowing excise duty collected by the assessee – Demand invoking period of limitation – HELD - The issue as regards central excise duty liability on the elements of ‘Royalty’ and ‘Stowing Excise Duty’ has already been settled in a catena of decisions - Following the ratio laid down in previous decisions of the Tribunal involving identical issues and similar facts regarding coal mining companies, excise duty is payable on the element of royalty only for the normal period of limitation by setting aside the demand for the extended period, and no duty of excise is payable on the element of Stowing excise duty - Additionally, in terms of the judgment of the Apex Court in Mineral Area Development Authority case, the interest liability arising on the Central Excise Duty payable on the element of royalty for the normal period of limitation is waived - The demand of Central Excise Duty on the element of Royalty to the extent it pertains to the normal period of limitation is upheld, the demand of interest on the above duty is set aside, and the entire demand of on the element of Stowing excise duty is set aside – The appeal is partly allowed - Relevant Date for Computation of Limitation Period when the periodical Return is filed belatedly - Whether the relevant date for computing the period of limitation under section 73(6) of the Finance Act 1994 is the due date for filing the periodical return or the actual date on which such return is filed when the return is filed in a delayed manner – HELD - The statutory provision under Section 73(6) of the Finance Act 1994 provides that where a periodical return showing particulars of service tax paid is filed by an assessee, the relevant date is the date on which such return is so filed. The section does not provide for any distinction between returns filed by the due date and returns filed after the due date. The plain language of the statute clearly indicates that the actual date of filing of the return constitutes the relevant date for computation of limitation, not the due date - The Tribunal rejects the Appellant's reliance on the Right Resource Management Service decision, as this decision did not consider the earlier judgment of the Patna High Court in Indian PAC Consulting case, which held that when a Return is required to be filed as per the Rules, the actual date of filing such return is the relevant date for computation of the period of limitation. The statutory provision is unambiguous and must be applied according to its plain meaning without distorting its interpretation to accommodate the assessee's position, even though this may result in hardship to the assessee - The show cause notice is held to be well within the normal period of limitation.
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