M/S. Hwashin Automotive (I) Pvt. Ltd vs Cce, Chennai Iv
- Case No.Appeal No. E/41266/2013
Ratio decidendi
The rule this decision rests on
A show-cause notice that does not make a concrete allegation of the infraction of law, and that omits the enquiry needed to establish the Revenue's case, is ill-founded and liable to be quashed. Where capital goods (moulds and dies) cleared to a job worker are not shown in the show-cause notice to have been used in a manner that prejudices Revenue, and the notice does not specify why goods cleared under CENVAT credit have escaped the excise authorities' notice, the notice lacks the concrete allegation necessary to found liability. A show-cause notice that does not allege whether the amortized cost of moulds and dies formed part of the assessable value of the goods, and that is unsupported by any enquiry into the quantity of capital goods held by the job worker, cannot be sustained, since the Tribunal cannot acquire jurisdiction over a matter absent such allegation and evidence.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of Order-in-Appeal No. 166/2013 (M-IV) dated 9.4.2013 passed by the Commissioner of Central Excise (Appeals), Chennai)
M/s. Hwashin Automotive (I) Pvt. Ltd. Appellant
Vs.
CCE, Chennai IV Respondent
Appearance
None for the Appellant Shri L. Paneerselvam, AC (AR) for the Respondent
CORAM
Honble Shri D.N. Panda, Judicial Member
Date of Hearing / Decision: 04.09.2015
Final Order No. 41106 / 2015
The show-cause notice is ill-founded without making a very concrete allegation as to the infraction of the law. No doubt factually certain moulds and dies were cleared by the appellant to the job worker. Once the job workers challan was issued and it came to the knowledge of the Department, no further enquiry was made to the usage of the moulds and dyes. In such circumstances, in what way Revenue is prejudiced is not brought out in the show-cause notice. The only allegation is that CENVAT credit was availed by the appellant on the goods cleared. Once the goods cleared has gone out of the reach of the excise authorities, the appellant shall be called upon to explain why the goods have escaped from the notice of excise authorities. There is no such concrete allegation in the show-cause notice for which that is ill-founded and is liable to be quashed. Duty of the Department was also to examine whether amortized cost of the moulds and dies formed part of the assessable value of the goods manufactured. That is also not done nor find place in the show-cause notice. So also the Department has not made any enquiry to find out the quantity of the capital goods in the hands of the job worker. In absence of detailed enquiry and result thereof without evidence, it is not possible to make a case by Tribunal to acquire jurisdiction over the same while there was no such allegation appears in the show-cause notice. Accordingly, the appeal is allowed.
(Dictated and pronounced in open court)
(D.N. Panda) Judicial Member
Rex
2
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