2000 (11) TMI 577 - AT - Central Excise

Appellate Tribunal Remands Duty Payment Dispute for Proper Assessment

The Appellate Tribunal set aside the Order-in-Appeal affirming duty payment on doubled yarn instead of single yarn stage. The Tribunal directed the matter ... Duty liability at single yarn stage - adjustment of duty paid - application of ratio in C.C.E. v. Banswara Syntex Ltd. - remand for redetermination - Modvat credit - value addition and ad valorem dutyDuty liability at single yarn stage - adjustment of duty paid - remand for redetermination - Whether the Commissioner (Appeals) erred in affirming the original order instead of remanding for recomputation after allowing adjustment of duty already paid on doubled yarn when liability is at single ply stage. - HELD THAT: - The Commissioner (Appeals) accepted that duty was exigible at the single ply yarn stage following the ratio in C.C.E. v. Banswara Syntex Ltd. and recorded that where duty had already been paid at the doubling stage such payment ought to be adjusted against any demand at the single ply stage (paras 4(5) and 8). Given those observations, the Commissioner (Appeals) should have directed remand to the adjudicating authority for recomputation of duty liability after giving credit for duty already paid on doubled yarn. The Tribunal finds that dismissal of the appeal without such remand was contrary to the Commissioner (Appeals)'s own findings and therefore unsustainable; accordingly the proper course is to set aside the impugned order and remit the matter for redetermination in accordance with law after hearing the parties (para 7). [Paras 7, 8]Impugned order set aside; matter remanded to the adjudicating authority for redetermination of duty liability after adjusting duty already paid, and after hearing both parties.Final Conclusion: The appeal is allowed to the extent that the Commissioner (Appeals)'s order is set aside and the matter is remitted to the adjudicating authority for recomputation of the appellants' duty liability in accordance with law, giving them credit for duty already paid on doubled yarn as indicated in the Commissioner (Appeals)'s observations. Issues:Challenge to validity of Order-in-Appeal affirming duty payment on doubled yarn instead of single yarn stage.Analysis:The appellants contested the Order-in-Appeal affirming duty payment on doubled yarn instead of the single yarn stage, challenging the duty demand of Rs. 58,011. The Commissioner (Appeals) upheld the duty liability at the single yarn stage based on the law set in C.C.E. v. Banswara Syntex Ltd., applying a waste percentage of 0.35% to determine the weight of single ply yarn for duty levy. The appellants disputed this decision in their appeal.The appellants argued that the Commissioner (Appeals) should have remanded the case to the Assistant Commissioner for readjusting the duty amount already paid on doubled yarn, as observed in paras 4(5) and 8 of the impugned order. The appellants contended that they were entitled to an adjustment of the duty paid on doubled yarn when determining their duty liability at the single yarn stage. The Commissioner (Appeals) failed to consider this and dismissed the appeal, leading to the appeal challenging the Order-in-Appeal.Upon review, the Appellate Tribunal found that the Commissioner (Appeals) erred in not remanding the case for redetermining the duty liability after allowing the adjustment of duty already paid on doubled yarn. The Tribunal set aside the Order-in-Appeal and directed the matter back to the adjudicating authority for determining the duty liability in accordance with law and considering the duty already paid by the appellants. The appeal was disposed of by remand for a proper assessment of duty liability.