COMMISSIONER OF CENTRAL EXCISE Vs. STAR DRUGS & RESEARCH LABS LTD ; CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) Civil Miscellaneous Appeal is directed against the Final Order No.41253 of 2015, dated 25.09.2015, passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Chennai 600 006, setting aside the demand of duty and penalty.

(2.) Before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, M/s.Star Drugs & Research Labs Ltd., 1st respondent herein, has contended that they are engaged in the business of manufacture of P or P medicaments, falling under Chapter 30 of Central Excise Tariff Act, 1985. They defaulted in making the payment of duty under deferred monthly payment facility, during the months of April, May, June and July, 2000 and hence, they were directed to pay the duty amount, on consignment basis. They paid the duty liability through CENVAT Credit and subsequently, there was change in law. The Department contended that the punishment would continue, till the default is fully discharged and during that period, duty has to be paid through Personal Ledger Account (in short "PLA") on consignment basis.

(3.) Before CESTAT, Madras, a contention has been made by the 1st respondent-assessee that change of law would not apply to them. According to them, the deferred monthly payment facility was withdrawn by the Deputy Commissioner of Central Excise, vide C.No.V/1/13/2000-VC, dated 23.08.2000, only for a period of two months, commencing from 31.08.2000. A show cause notice was issued by the Deputy Commissioner and the matter was adjudicated upon. Vide order, dated 21.06.2001, the 1st respondent-assessee was directed to pay the duty on the goods cleared in respect of which, debit has been made in CENVAT account, on consignment basis, from the date on which, the facility of monthly payments was withdrawn and the extent of the debit to be calculated. Amount was directed to be paid in PLA within 15 days, from the date of receipt of the order. Being aggrieved by the order in Original, dated 21.06.2001, the 1st respondent-assessee has filed an appeal, which was dismissed on 28.05.2002. Further appeal filed with a delay has been dismissed by the CESTAT, Chennai, on 27.10.2004.