In Excise Appeal No.75735 of 2022 -CESTAT- CESTAT (Kolkata) applies Doctrine of Merger, finds re-adjudication of dispute by Commissioner which was already concluded in the remanded matter by the Tribunal as incorrect
Members P.K. Choudhary (Judicial) & K. Anpazhakan (Technical) [27-04-2023]

Read Order: Beekay Steel Industries Limited v. Commissioner of CGST & Cx, Jamshedpur Commissionerate

LE Correspondent

New Delhi, May 5, 2023: The Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that the denovo order passed by the Adjudicating authority was hit by the Doctrine of Merger as it had exceeded the directions of the Tribunal in the earlier round of litigation.

In the present case, Beekay Steel Industries Limited (appellant), a company engaged in the manufacture of TMT bars and rods, was issued a show cause notice alleging irregular availment of CENVAT credit on the basis of ineligible documents issued by Tata Steel Ltd. (TSL) in violation of provisions of Rule 3 and Rule 9 of the CENVAT Credit Rules, 2004.

The Tribunal observed that the Commissioner in the denovo Order-in-original though had reiterated the specific direction of the Tribunal, he went on to examine the statutory provisions and passed the impugned order. The Tribunal was of the view that the Commissioner had re-adjudicated the dispute which was already settled by the earlier order of the Tribunal in the first round of litigation.

“Under the Doctrine of Merger, the Commissioner was not correct in re-visiting the issue which was already concluded in the remanded matter by the Tribunal, wherein directions were very specific and the Ld. Adjudicating authority was only required to examine the Certificate issued by the Senior Manager Accounts (Indirect Taxation) on behalf of TSL since it was not submitted before the Ld. Adjudicating authority during adjudication,” said the Tribunal.