Tribunal Upholds NCCD on Tobacco Products Under GST Despite Exemption

The Tribunal set aside the Commissioner (Appeals) order, ruling that NCCD on tobacco products would continue to be levied under the Goods and Service Tax regime despite the exemption notification. The Tribunal emphasized that the exemption of one duty does not automatically exempt other duties, allowing the appeal and denying the refund claim for NCCD paid by the respondent.

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Issues Involved:
1. Interpretation of National Calamity Contingent Duty (NCCD) levy on tobacco products during the Goods and Service Tax regime.
2. Claim for refund of NCCD paid by the respondent.
3. Applicability of Supreme Court judgments in determining NCCD exemption.

Summary:
Issue 1:
The case involved a dispute regarding the levy of National Calamity Contingent Duty (NCCD) on tobacco products under the Goods and Service Tax regime. The Commissioner (Appeals) held that NCCD was exempted on tobacco products based on a Notification and Supreme Court judgments.

Issue 2:
The respondent initially paid NCCD but later claimed a refund after a Supreme Court judgment. The refund claim was partially allowed by the Commissioner (Appeals) based on the decision in Bajaj Auto case.

Issue 3:
The Department argued that a subsequent Supreme Court decision in M/s. Unicorn Industries case held that NCCD would be leviable under the GST regime. The Supreme Court clarified that simply because one type of duty is exempted, other duties do not automatically fall under the exemption.

In conclusion, the Tribunal set aside the Commissioner (Appeals) order as it solely relied on the Bajaj Auto judgment, which was deemed per incuriam. The Tribunal held that NCCD would continue to be levied despite the exemption notification, thereby allowing the appeal.

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