https://www.taxtmi.com/caselaws?id=449295 The CESTAT Ahmedabad allowed the appeal by remand in a case involving sustainability of cess when basic customs duty was nil. The department contended that despite nil basic customs duty, other duties like EC, SHEC and SWS should not have been debited in duty credit scrips. The tribunal distinguished the SC decision in Unicorn Industries case, noting that unlike NCCD levied as separate ad valorem duty under different legislation, the instant case involved cess collected as percentage of duty liability. Following precedents including Louis Dreyfus Company and La Tim Metal Industries cases, the tribunal held that when cess is computed as percentage of exempted duty liability, it cannot be levied on zero duty liability. The matter was remanded for detailed examination of specifics including CVD/IGST components and statutory provisions. Issues of limitation and penalty were to be decided based on quantum, legality and malicious intention. en-us Wed, 07 Feb 2024 00:00:00 +0530 Tue, 20 Aug 2024 14:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449295 The CESTAT Ahmedabad allowed the appeal by remand in a case involving sustainability of cess when basic customs duty was nil. The department contended that despite nil basic customs duty, other duties like EC, SHEC and SWS should not have been debited in duty credit scrips. The tribunal distinguished the SC decision in Unicorn Industries case, noting that unlike NCCD levied as separate ad valorem duty under different legislation, the instant case involved cess collected as percentage of duty liability. Following precedents including Louis Dreyfus Company and La Tim Metal Industries cases, the tribunal held that when cess is computed as percentage of exempted duty liability, it cannot be levied on zero duty liability. The matter was remanded for detailed examination of specifics including CVD/IGST components and statutory provisions. Issues of limitation and penalty were to be decided based on quantum, legality and malicious intention. Case-Laws Customs Wed, 07 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449295