Supreme Court remanded matter to CESTAT for verification of certificate

1. M/s. Aurangabad Electricals Ltd manufactured Motor Vehicle Parts.

2. For manufacture of their final product, it used to purchase some inputs from M/s. Bajaj Auto Ltd.on which duty was paid by M/s. Bajaj.

3. The appellants had submitted price declarations which were accepted by the department.

4. CCEC issued a show cause notice alleging that the inpust supplied to appellant has been undervalued.

5. Adjudicating Commissioner passed an order that the inputs supplied to appellant by M/s. Bajaj were under-valued, and consequently, the final product supplied to M/s. Bajaj had been under-valued leading to evasion of duty.

6. Adjudicating Commissioner confirmed the differential duty demand, and penalty.

7. The Tribunal remanded the matter to the Adjudicating Commissioner for re-computation of excise duty, and it reduced the penalty.

On appeal, the Supreme Court held as under:

8. The said Certificate issued by Mukund Mankar and Co., Chartered Accountant, points out freight charges incurred by M/s. Aurangabad EL for getting material from Bajaj to M/s. Aurangabad EL, as well as loading and unloading charges, consumables overheads and profit.

9. If such payment was made, then the whole premises on which show cause notice issued pales into insignificance.

10. The appellant had produced the Certificate along with the other papers filed before the Tribunal, may be after the appeals were heard and reserved for judgment.

11. Keeping in view the well settled principles laid down by this Court that technicalities should not defeat rendering of complete justice to a litigant, we think it appropriate to remand the matter to the Tribunal to verify and consider whether the Certificate which is already placed on record by the appellant, would assist them in support of their defence.

Case Reference - Aurangabad Electricals Ltd vs Commissioner Of Central Excise & Customs.

Supreme Court of India