Brand Name Affixed on Invoice Insufficient to Deny Excise Duty Exemption: Calcutta HC Quashes Order of CESTAT [Read Order]

Quashing the order of the Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) thereby ruling that the brand name affixed on invoice insufficient to deny excise duty exemption.

This appeal under Section 35G of the Central Excise Act, 1944 challenged the order of the CESTAT denying the appellant, M/s. Kanchan Oil Industries Limited, an excise duty exemption under Notification No. 6/2003-CE, which exempts branded goods in retail unit containers (excluding certain hydrogenated fats, Vanaspati, and bakery shortening) at Nil rate. A show cause notice alleged clandestine clearance, following a surprise inspection, of branded "Vanaspati" (brand "Shiva") worth Rs.

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28,34,752/-, including 116.052 MT in retail unit containers, without duty payment. The Commissioner's order confirmed a duty demand of Rs. 37,80,246/-, an equivalent penalty under Section 11AC of the Central Excise Act, and interest at 15%.