2026-VIL-852-CESTAT-KOL-CE
  1. Home
  2. 2026-VIL-852-CESTAT-KOL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Transfer/Sale of manufacturing unit – Backward integration between sister concerns – Demand of duty on goods manufactured and captively consumed at the acquired unit during the interregnum between the date of acquisition and the date of grant of amended registration, when the final products manufactured therefrom have already suffered duty on clearance - Whether the transfer of the unit could be disregarded merely because the amendment of registration was granted at a later date – HELD – The documentary evidence on record, including the Deed of Sale and the Central Excise Registration Certificate subsequently obtained, conclusively establishes that there was a genuine sale of the manufacturing unit by Respondent No.1 to Respondent No.2 - The substantive right of possession arising from the sale agreement cannot be defeated by the procedural delay in filing the surrender/amendment application, since such filing necessarily depends on prior compliances such as cancellation/amendment of factory licence, ground plan certification, and clearance of dues, which are beyond the immediate control of the parties. The ingots manufactured at the acquired unit were captively consumed by the purchaser for manufacture of TMT Bars and Miss Roll, which were cleared on payment of appropriate duty, and therefore demanding duty again on the intermediate ingots would amount to double taxation on the same goods in a wholly revenue-neutral situation - While the purchaser ought to have awaited grant of amended registration before commencing production, for such procedural lapse, imposition of penalty under Rule 25 of the Central Excise Rules, 2002 for violation of Rule 9(1) read with Notification No.35/2001 (N.T.) is upheld - The penalties imposed by the Commissioner (Appeals), not being contested and already paid to give a quietus to litigation – The order of the Commissioner (Appeals) setting aside the duty demand is upheld and the appeal filed by the Revenue is dismissed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Appeal filed wrongly...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?