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of <h1>Tribunal Overturns Order Due to Jurisdictional Errors</h1> <h3>M/s. Havells India Ltd. Versus CCE & ST, New Delhi</h3> M/s. Havells India Ltd. Versus CCE & ST, New Delhi - 2018 (364) E.L.T. 488 (Tri. - Del.) Issues:1. Validity of show cause notice and adjudication proceedings regarding jurisdiction.2. Dual jurisdiction of central excise and customs officers in demanding customs duty.3. Compliance with conditions of 1996 Rules for exemption.4. Applicability of Rule 8 for demanding customs duty beyond five years.5. Interpretation of Supreme Court judgments in similar cases.Issue 1: Validity of show cause notice and adjudication proceedings regarding jurisdiction:The appeal challenged the jurisdiction of the Dy. Commissioner of Central Excise to demand customs duty, arguing that the assessment at import was done by customs officers. The Tribunal found the dual jurisdiction of central excise and customs officers unsustainable, noting that the DRI correctly invoked the proper Customs Authority for assessment under Section 28. The Tribunal ruled that the central excise officer's demand for customs duty was beyond legal competence.Issue 2: Dual jurisdiction of central excise and customs officers in demanding customs duty:The Tribunal highlighted the inconsistency in the Revenue's approach, with two separate proceedings initiated against the appellant. One under Section 28 for a permissible five-year period and another invoking Rule 8 for a period beyond five years. The Tribunal deemed this dual approach legally unsustainable and emphasized the need for coherence in jurisdictional actions.Issue 3: Compliance with conditions of 1996 Rules for exemption:The appellant contended that all procedures under the exemption notification were duly followed, and the demand was time-barred. The Tribunal agreed, emphasizing that the department was aware of the import details and usage, barring the demand by limitation.Issue 4: Applicability of Rule 8 for demanding customs duty beyond five years:The Revenue justified invoking Rule 8 for recovery, citing a running bond executed by the appellant under the 1996 Rules. However, the Tribunal found the demand beyond a reasonable time, questioning the need for dual proceedings and emphasizing the importance of adhering to statutory time limits.Issue 5: Interpretation of Supreme Court judgments in similar cases:The Tribunal analyzed the Apex Court's decision in Gujarat Ambuja Exports Ltd. to justify Rule 8 action. However, it noted the need to consider the reasonableness of the period for issuing demands. The Tribunal emphasized the importance of jurisdictional clarity, citing relevant High Court and Supreme Court decisions.In conclusion, the Tribunal set aside the impugned order, allowing the appeal based on the lack of legal sustainability on multiple grounds, including jurisdictional inconsistencies and procedural irregularities.
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