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of <h1>Tribunal rejects appeal on dropped duty demand, citing company's unavailability and emphasizing liberal interpretation.</h1> <h3>COMMISSIONER OF C. EX. & CUS., SURAT-I Versus SHABNAM PROCESSORS PVT. LTD.</h3> COMMISSIONER OF C. EX. & CUS., SURAT-I Versus SHABNAM PROCESSORS PVT. LTD. - 2009 (236) E.L.T. 533 (Tri. - Ahmd.) Issues: Department's appeal against Commissioner's order dropping demand for duty for certain months.In this case, the issue revolved around the Department's appeal against the dropping of the demand for duty for certain months by the Commissioner. The respondent, an independent processor of textile fabrics, had a stenter sealed on 1-5-2000 and reopened on 12-5-2000. Subsequently, the possession of the unit and its assets was taken over by a financial institution on 30-5-2000. The Commissioner confirmed a duty demand for a specific period but dropped a larger demand for other months. The Department appealed against the dropping of the demand for those months.The Department argued that the stenters were not sealed as per the prescribed procedure by the Commissioner but by the Financial Corporation. They contended that the dropping of the demands was not justified. However, upon careful consideration, the Tribunal noted that the financial institution had taken possession of the company and prevented the respondent from operating the stenters. The purpose of sealing was to prevent false claims by the assessee to avoid duty payment. As the company was under the financial institution's possession and not available for production, imposing duty liability was deemed unjustified. The Tribunal emphasized the need for a liberal view considering the circumstances and procedural requirements.Ultimately, the Tribunal rejected the Department's appeal, stating that in the given circumstances, where the company was not available for production due to the financial institution's possession, the duty liability imposition was unwarranted. The judgment highlighted the importance of considering the practical implications and context while interpreting procedural requirements in such cases.
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