M/s Dhanbad Fuels Limited v. Commissioner of CGST & CX, Siliguri
CESTAT, Kolkata | Excise Appeal No. 75871 of 2019 | Final Order No. 75865/2026 | Decided on 10.07.2026 | Coram: R. Muralidhar, Member (Judicial)
Background
The Appellant, a manufacturer of sponge iron, procured two types of coal—one on which Cenvat credit was availed and another on which no credit was taken. Some of the coal was subsequently sold to third parties. The Department issued a Show Cause Notice demanding ₹19,07,235/- in Excise Duty for the period November 2011 to February 2015, invoking the extended period on the allegation that Cenvat-availed coal had been cleared without reversal of credit.
Issue
Whether the extended-period demand could be sustained when the details regarding receipt, use and clearance of coal had already been disclosed by the Appellant in its ER-1 and ER-6 returns.
Tribunal's Reasoning and Decision
The Tribunal observed that the Show Cause Notice was based entirely on the ER-6 returns, and the Department had conducted no investigation to establish that the coal cleared to third parties was specifically the coal on which Cenvat credit had been availed. The ER-1 and ER-6 returns already contained the relevant clearance details, and the quantities relied upon in the SCN corresponded with the returns.
The Tribunal therefore held that there was no suppression of facts with intent to evade duty. The demand for the extended period was consequently held unsustainable on both merits and limitation. The impugned order was set aside and the appeal was allowed, with consequential relief as per law.
(Above brief of the judgement prepared by Ms. Shweta Singh, Advocate, Dated: 10 Aug 2026)