Adjudicating authority trying to impose condition, which does not exist
THE appellant is a manufacturer of water purification/filtration equipment. They were denied the benefit of Notification no. 6/2006-CE (Sl. No. 8-D) of the table annexed to the notification, which prescribed a concessional rate of duty of 4% ad valorem on the said goods without any condition attached thereto. However, a demand of Rs.32,47,188/- along with interest has been confirmed against the appellant on the ground that the appellant did not produce a certificate from the District Collector for availing the concessional rate of duty. The appeal against the same before the lower adjudicating authority was also rejected.
Before the CESTAT, the appellant submitted that the notification prescribes two rates of duty for the impugned goods, one, a "Nil" rate subject to production of the certificate from the District Collector and another of 4% which is without any condition and it is this entry that the appellant chose while clearing the goods. Since the adjudicating authority had misread the notification and imposed a condition which does not exist, the order is bad in law, the appellant submitted.
The Bench referred to the relevant entry and observed that there is no condition prescribed against the said Serial no. 8-D and in the condition column, the entry is blank.
In fine, the CESTAT set aside the order and allowed the appeal.
Can we have a better word than "harassment" for describing the above episode? Strangely, the Revenue representative instead of "fairly agreeing" to the submissions made by the appellant chose to reiterate the findings of the lower appellate authority. It's time, "costs' make an entry!