Case Note & Summary
The Revenue (Commissioner of Central Excise & Service Tax) filed an appeal under Section 35G of the Central Excise Act, 1944 against the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Bengaluru dated 18.02.2016. The appeal raised purported substantial questions of law regarding the reversal of CENVAT credit by the assessee, M/s. Bell Ceramics Ltd. (now Orient Bell Ltd.), before removal of inputs as waste and scrap. The High Court of Karnataka, comprising Dr. Vineet Kothari and Mrs. S. Sujatha, dismissed the appeal, holding that the CESTAT's finding that the assessee had reversed the credit was a pure finding of fact based on appreciation of evidence. The court noted that no substantial question of law arose from the impugned order, and the appeal under Section 35G was not maintainable on pure findings of fact. The court did not frame any substantial question of law and dismissed the appeal.
Headnote
A) Central Excise - CENVAT Credit - Reversal of Credit - Section 35G of the Central Excise Act, 1944 - The Revenue appealed against CESTAT's order which held that the assessee had reversed CENVAT credit before removal of inputs as waste and scrap. The High Court found that the CESTAT's finding was a pure finding of fact based on appreciation of evidence, and no substantial question of law arose. Held that the appeal under Section 35G is not maintainable on pure findings of fact. (Paras 1-3)
Issue of Consideration
Whether the CESTAT's finding that the assessee had reversed the CENVAT credit before removal of inputs as waste and scrap gives rise to a substantial question of law under Section 35G of the Central Excise Act, 1944.
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arose from the CESTAT's order. The court did not frame any substantial question of law and dismissed the appeal.
Law Points
- Substantial question of law
- CENVAT credit reversal
- Pure finding of fact
- Section 35G Central Excise Act
- 1944
Case Details
2018 LawText (KAR) (07) 21
Dr. Vineet Kothari, Mrs. S. Sujatha
Mr. K.V. Aravind (for Appellant), Mr. K.S. Ravishankar and Mr. N. Ananda (for Respondent)
The Commissioner of Central Excise & Service Tax, Bengaluru-I Commissionerate
M/s. Bell Ceramics Ltd., (Now Orient Bell Ltd.)
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Nature of Litigation
Appeal under Section 35G of the Central Excise Act, 1944 against order of CESTAT.
Remedy Sought
Revenue sought to set aside CESTAT order and answer substantial questions of law in its favour.
Filing Reason
Revenue challenged CESTAT's finding that assessee had reversed CENVAT credit before removal of inputs as waste and scrap.
Previous Decisions
CESTAT, South Zonal Bench, Bengaluru passed Final Order No.20260/2016 dated 17.02.2016 (pronounced 18.02.2016) in favour of assessee.
Issues
Whether the CESTAT's finding that the assessee had reversed CENVAT credit before removal of inputs as waste and scrap gives rise to a substantial question of law under Section 35G of the Central Excise Act, 1944.
Submissions/Arguments
Revenue argued that the CESTAT erred in holding that the assessee had reversed CENVAT credit before removal of inputs as waste and scrap.
Assessee contended that the finding was a pure finding of fact and no substantial question of law arose.
Ratio Decidendi
Under Section 35G of the Central Excise Act, 1944, an appeal lies only on substantial questions of law. A pure finding of fact based on appreciation of evidence does not give rise to a substantial question of law and is not open to challenge in such an appeal.
Judgment Excerpts
The Revenue has filed this appeal under Section 35G of the Central Excise Act, 1944 raising the purported substantial questions of law to be arising from the order of CESTAT, South Zonal Bench, Bengaluru, dated 18.02.2016.
Procedural History
The Revenue filed an appeal under Section 35G of the Central Excise Act, 1944 before the High Court of Karnataka against the order of CESTAT, South Zonal Bench, Bengaluru dated 18.02.2016. The High Court dismissed the appeal on 25.07.2018.
Acts & Sections
- Central Excise Act, 1944: 35G
