CESTAT Chennai Rules in Favor of Appellant on Duty Dispute

The Appellate Tribunal CESTAT Chennai ruled in favor of the appellant in a case concerning duty payable on PP bags/strips used in the manufacture of plastic sacks/fabrics without payment of duty. Citing a previous decision, the Tribunal concluded that the demand for duty was not sustainable in this instance. As a result, the impugned orders were set aside, and the appeals were allowed with any necessary consequential reliefs as per law.

---

---

Issues:
Whether duty payable on PP bags/strips captively consumed in the manufacture of plastic sacks/fabrics cleared without payment of duty.

Analysis:
The Appellate Tribunal CESTAT Chennai, comprising Hon’ble Ms. Sulekha Beevi C.S., Member (Judicial), and Hon’ble Shri P. Anjani Kumar, Member (Technical), addressed the issue of duty payable on PP bags/strips captively consumed in the manufacture of plastic sacks/fabrics cleared without payment of duty. The Tribunal noted that the said issue had already been settled in the case of Southern Bags and Chemicals Pvt. Ltd. Vs CCE Tirunelveli – 2017 (12) TMI 6 – CESTAT Chennai. The appellant was represented by Ld. Counsel Mr. V. Ravindran, while Ld. A.R Ms. K. Komathi appeared for the department.

The Tribunal, after considering the precedent set in the case referred to, concluded that the demand for duty cannot be sustained in the present case. Therefore, the impugned orders were set aside, and the appeals were allowed with consequential reliefs, if any, as per law. The decision was dictated and pronounced in open court by the Tribunal.

In summary, the judgment by the Appellate Tribunal CESTAT Chennai revolved around the issue of duty payable on PP bags/strips used in the manufacture of plastic sacks/fabrics without payment of duty. The Tribunal relied on a previous decision to rule in favor of the appellant, setting aside the demand for duty and allowing the appeals with any necessary consequential reliefs.

---