Madras High Court
Kothari Sugars And Chemicals ... vs The Commissioner Of Cgst & Central ... on 28 June, 2023
W.P.(MD) Nos.6895 to 6906 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 28.06.2023
CORAM:
THE HONOURABLE MS.JUSTICE P.T.ASHA
W.P.(MD) Nos.6895 to 6906 of 2022
and
W.M.P(MD) Nos.5293, 5294, 5296, 5297, 5298, 5299
and 5300 to 5305 of 2022
W.P.(MD) No.6895 of 2022
Kothari Sugars and Chemicals Limited,
No.115, Mahatma Gandhi Road,
Nungambakkam,
Chennai-600 034.
and interalia having its factory at Kattur,
Lalgudi Taluk, Trichy District,
Represented by its Company Secretary
Mr.R.Prakash ... Petitioner
Vs.
1.The Commissioner of CGST & Central Excise,
No.1, Williams Road, Cantonment,
Trichy, Tamil Nadu-600 001.
2.The Deputy Commissioner of Central Excise and
Service Tax,
Central Excise and Service Tax 2 Division,
No.1, William Road, Cantonment, Trichy,
Tamil Nadu 600 001.
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W.P.(MD) Nos.6895 to 6906 of 2022
3.The Assistant Commissioner of Central Excise
and Service Tax,
Central Excise and Service Tax 2 Division,
No.1 Williams Road, Cantonment,
Trichy, Tamil Nadu 600 001.
4.The Superintendent of Central Excise and Service Tax,
Central Excise Range,
Oppillatha Amman Kovil Street,
Ariyalur, Tamil Nadu.
Prayer :- Petition filed under Article 226 of the Constitution of India,
praying for issuance of Writ of Certiorari, calling for the records of the
second respondent pertaining to the impugned Show Cause Notice
bearing No.C.No.IV/09/10/2009-Cx Adj, DSCN No.10/2009 dated
16.06.2009 issued by the second respondent and quash the same.
For Petitioner : Mr.Joseph Kodianthara
Senior Counsel
for Mr.AR.Ramanathan
For Respondents : Mr.N.Dilipkumar
Senior Standing Counsel
Assisted by
Mr.K.Prabhu
Junior Standing Counsel
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W.P.(MD) Nos.6895 to 6906 of 2022
COMMON ORDER
The above writ petitions have been filed questioning the show
cause notices issued by the second respondent dated 16.06.2009,
02.12.2010, 03.02.2014, 12.01.2011, 01.04.2013, 09.11.2015,
30.01.2015, 13.07.2012, 09.02.2011, 02.11.2012, 26.12.2011 and
24.02.2010 respectively.
2. The show cause notices have been issued asking the petitioners
to show cause as to why CENVAT credit availed on capital goods used in
co-generation plant should not be demanded under the relevant
provisions together with interest and penalty. This very same issue has
formed the subject matter of the order passed by the Office of the
Commissioner of GST and Central Exercise in Original No.
08/COMMR/CE/2023, in the case of M/s.EID Parry (India) Limited,
Pugalur Sugar Factory, Pugalur, dated 31.03.2023. After considering the
various arguments and the judgments, ultimately, the Commissioner has
held that the petitioner therein is entitled to the CENVAT credit in respect
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W.P.(MD) Nos.6895 to 6906 of 2022
of machineries and other items used in Captive Power Plant. Therefore,
the same yardstick has to be applied to the cases on hand.
3. Mr.N.Dilipkumar, learned Senior Standing Counsel for the
respondents would submit that since it is the show cause notice, this
representation can be directly made before the Officer concerned.
4. On the submissions of both counsels, these Writ Petitions are
disposed of with a direction that the official of the petitioner shall appear
before the Commissioner of CGST and Central Excise/first respondent
on 12.07.2023 at about 11.30 a.m. The first respondent shall follow the
order dated 31.03.2023 passed in Original No.08/COMMR/CE/2023 and
allow the CENVAT credit in respect of the machineries that the petitioner
used in their co-generation/captive power plant. The said order shall be
passed within a period of two weeks from the date of appearance.
5. The learned counsel for the petitioner concedes that in the case
of W.P(MD)Nos.6896 and 6903 of 2023, they are not pressing the
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W.P.(MD) Nos.6895 to 6906 of 2022
arguments with reference to the input credit, since they have already
made the payments. The proof of the same can be placed before the
Commissioner of CGST and Central Excise, who shall take note of the
above and pass orders accordingly. In respect of the aforesaid two
writ petitions alone, input credit is mentioned in addition to the CENVAT
credit on capital goods. No costs. Consequently, connected
miscellaneous petitions are closed.
28.06.2023
NCC : Yes/No
Index : Yes/No
Internet : Yes
cp
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W.P.(MD) Nos.6895 to 6906 of 2022
P.T.ASHA, J.
cp
W.P.(MD) Nos.6895 to 6906 of 2022
Dated: 28.06.2023
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