2025 (8) TMI 329

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....t at Samba (Jammu & Kashmir) and have claimed the exemption under Notification No.56/2002-CE dated 14.11.2002 on substantial expansion. After the issuance of Notification No.19/2008 dated 27.03.2008 which restricted the exemption to a certain percentage of value addition; the percentage of value addition prescribed for the items manufactured by the appellants was 36%; as the appellants claimed the value addition to be more than 115% of the normal rate, they applied for special rate in terms of Para 2.1 of the Notification and submitted documents backed by a certificate from the statutory auditors for the year 2008-09; thus, the appellants claimed value addition of 62.65%/ 58.60% on Section 4A value/ commercial value; the application was rej....

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.... and that the demands raised were in order in terms of Para 2C(g) of the Notification No.56/2002. Hence, this appeal. 2. Shri M.H. Patil, learned Counsel for the appellants submits that the learned Commissioner (Appeals) passed the impugned order disregarding/ without considering the final order passed by CESTAT, as per which the appellants were entitled for a value addition of 58.60%; the applications for fixing of special rates were pending before the Commissioner and any confirmation of demands, raised before finalisation of special rates, was bad in law; when the appellants are eligible for special rates raising demands and confirming the same is unjust; it would be a futile exercise to claim the refunds subsequently if the application....

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....ddition declared for their products; learned Commissioner vide Order-in-Original dated 21.05.2010 rejected their claim. This Bench, on an appeal filed by the appellants, fixed the special rate at 58.60% vide Final Order dated 06.06.2023. During the pendency of the special rate, the appellants continued to avail self-credit on special rate basis. Revenue followed it up by issuing show cause notices, dated 03.01.2012, 27.04.2012 15.02.2013, 25.06.2013 & 25.10.2013, in terms of Para 2C(g) of the Notification read with Section 11A of the Central Excise Act, 1944. 6. The Joint Commissioner passed the impugned order dated 22.05.2023 while the party's appeal was pending before this Bench. Having waited ten long years, the Joint Commissioner was i....

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....g to the year 2008-09 was pending before this Bench. We find that it was not prudent on the part of the Commissioner (Appeals) and the Joint Commissioner to confirm the demands and to say that if the assessee wins the appeal, the route of refund is always available to them. We also find that jurisdictional Commissioner could have decided the special rate applications filed by the appellants expeditiously after the decision by the Bench vide Final Order dated 06.06.2023. Therefore, we find that the decision of the adjudicating authority and the appellate authority is premature. We are of the considered opinion that such an exercise will only contribute to the multiplicity of litigation on the same issue. 7. In view of the above, we are of t....