2025 (6) TMI 1724

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....dated 31.01.2019 (impugned order). The Adjudicating Authority decided the show cause notice issued by the Department, interalia, demanding Clean Environment Cess (Cess) of Rs. 2,35,29,71,776/- in respect of the closing stock of coal lying with them as on 30.06.2017 i.e. 5882429.44 MT. This demand was based on certain investigation wherein it was noticed that they had not paid Cess in respect of the stock lying with them as on 30.06.2017. 2. The Adjudicating Authority has, interalia, examined the provisions of leviability of Cess in terms of Finance Act. 2010 and Clean Environment Cess Rules, 2010. He also examined the applicability of Notification No. 12/2017- CE dated 30.06.2017 and held that the said exemption was available only to the d....

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....rever applicable, will also be payable if cleared on or after 01.07.2017 as leviable on such goods. Therefore, now the said retrospective amendment consequentially cover their goods as all the clearances effected post 01.07.2017 have suffered applicable GST as well as compensation Cess. 4. Learned CA for the appellant also submits that they have paid even the interest component on the clearance made to their thermal power plant for captive consumption. His main argument with regard to limitation and imposition of penalty is on the grounds that appellants are public sector undertaking and that there cannot be any intent to deliberately evade duty or tax, etc., and also the fact while the issue pertains to the year 2017, the investigation st....

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....n Appeal No. E/30237/2024 was dropped simply on the ground that this issue and the amount are both covered in the demand raised in the Appeal No. E/30513/2019 itself. As on merit, the appellants are not disputing clearance of certain quantity captively to their TPP and to that extent they are not meeting the conditions of the retrospective amendment, therefore, to that extent, the demand is required to be upheld out of total demand of Cess along with applicable interest as ordered by the Adjudicating Authority. For the remaining amount, the demand may not be sustainable in view of the retrospective amendment. 7. Heard both the sides and perused the records. Since both the appeals have similar issue, we take up both the appeals together. 8....

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.... per se, on captive consumption as well as payment of Central Excise duty applicable on the quantity cleared to thermal power plant out of total quantity, but only on interest which they have already paid under protest as also imposition of penalty. He is also arguing that invocation of extended period is not tenable in the facts of the case. 10. Thus, in view of retrospective amendment of Finance Act 2024, whereby Notification No. 12/2017 has now covered the 'cess' also, subject to certain conditions, the issue of it's being covered under the notification or otherwise upon fulfilling the stipulated conditions is no longer survives. However, whether Compensation Cess was paid even for clearance to them on TPP is not clear. While they have ....