2022 (2) TMI 1118

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....s-II), Kolkata by which the refund application of the Appellant was partly allowed to the extent of Rs. 2,97,57,505/- while the balance amount of Rs. 1,69,13,316/- has been rejected for the grounds contained in the impugned order. Thus, the Appellant is in appeal for the amount rejected while the Revenue is in appeal against the amount sanctioned as refund by the First Appellate Authority. 2. Briefly stated, the facts of the case are that the Appellant is engaged in the manufacture and clearance of Aerated water and Fruit based drinks (in short 'final products') classifiable under Chapter- 22 of the Central Excise Tariff Act, 1985 on payment of applicable excise duty. The Appellant operates under the Cenvat Credit Scheme and Sugar is one o....

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.... ground that such amount is pending adjudication on the ground that when the subject matter of refund itself is not in dispute and that the lower authority has sanctioned the refund for the period post June 2015 hence the proceedings vide notice dated 21/08/2015 becomes infructuous as in the current proceedings also the same amount for the same period is in dispute and when the eligibility of the Cenvat credit has been defined to be in favour of the Appellant, then the refund for the prior period cannot be withheld. The Learned Advocate refers to the decision of the Hon'ble Karnataka High Court rendered in the case of Shree Renuka Sugar [2014 (302) ELT 33] upholding the views of the Tribunal [2007 (218) ELT 388] wherein Cenvat Credit in res....

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.... Cess for north eastern units when excise duty was exempted but not with the eligibility of Cenvat Credit on Sugar Cess. 8. Heard both sides through video conferencing and perused the Appeal records. 9. We find that the substantial question of law considered by the  Hon'ble Karnataka High Court in Renuka Sugar case is set out at para 6 thereof, which is as follows:- "Whether the assessee is entitled for Cenvat credit, on the Sugar Cess under Section 3(4) of the Sugar Cess Act, 1982 as the same is not one of the duties allowed for Cenvat credit under Rule3(1) of the Cenvat Credit Rules,2004." Therefore, the judgement of the Hon'ble Karnataka High Court in the Renuka Sugar case (supra) is directly dealing with the issue involved in....

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....eady been decided in favour of the Appellant assessee, then the earlier demand notices become infructuous and cannot be sustained in the eyes of law. Further for the same period on the same issue, two demand notices cannot be sustained and hence we are of the view that the order of the learned First Appellate Authority needs to be modified to the above extent. Also, Instruction F. No. 201/01/2014-CX.6, dated 26-6-2014 issued by the CBIC as regards "Instructions regarding need to follow Judicial discipline in adjudication proceedings" wherein it was stated that - "2. However the binding precedent was not followed which led to litigation before the Hon'ble High Court to which Hon'ble High Court took a serious view. It may be noted that on t....