TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellate Authority Rules in Favor of Respondents Due to Limitation Issue</h1> <h3>COMMISSIONER OF C. EX. & CUS., DAMAN Versus SUPRA DYE CHEM PVT. LTD.</h3> COMMISSIONER OF C. EX. & CUS., DAMAN Versus SUPRA DYE CHEM PVT. LTD. - 2009 (236) E.L.T. 563 (Tri. - Ahmd.) Issues:1. Dispute over the benefit of Notification No. 1/93 availed by the respondents during 1996-97.2. Consideration of clearances made by the previous unit in relation to duty demand.3. Appeal against the demand on the ground of limitation.Issue 1: Dispute over the benefit of Notification No. 1/93 availed by the respondents during 1996-97:The case involved a dispute regarding the benefit of Notification No. 1/93 availed by the respondents during the period 1996-97. The respondents were engaged in the manufacture of S.O. Dyes and had taken over premises previously used by another entity, M/s. Emerald Color Industries, which had also availed the same notification benefits. The respondents applied for registration and claimed the benefit of the notification, which was granted by the authorities. However, a show cause notice was later issued raising a demand of duty based on the clearances made by the previous unit.Issue 2: Consideration of clearances made by the previous unit in relation to duty demand:The revenue contended that the clearances made by the previous unit, M/s. Emerald Color Industries, should be considered while determining the duty demand on the respondents. The original adjudicating authority confirmed the demand based on this premise. However, the Commissioner (Appeals) set aside the demand on the ground of limitation. The appellate authority noted that the respondents had applied for new registration, filed necessary documents, and started availing the benefit of the notification after filing the classification list. It was observed that the department should have inquired into the eligibility of the respondents for the notification benefit within the prescribed time frame.Issue 3: Appeal against the demand on the ground of limitation:The Commissioner (Appeals) set aside the demand raised by the revenue on the grounds of limitation. It was highlighted that the respondents had provided the required documentation and started availing the notification benefits after filing the classification list. The appellate authority ruled that the demand should be barred by limitation as the respondents were not guilty of suppression or misstatement to evade duty payment. Consequently, the appeal filed by the revenue was rejected, affirming the decision of the appellate authority.This judgment underscores the importance of timely inquiries into eligibility for tax benefits, especially in cases involving the transfer of premises and continuity of manufacturing activities. It also highlights the significance of adherence to prescribed timelines in issuing show cause notices to avoid demands being barred by limitation.
TaxTMI 