TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court rules in favor of Coal India Ltd., allowing 5.15% excise duty on coal sales</h1> <h3>ANMOL INDIA LTD. Versus COAL INDIA LIMITED</h3> ANMOL INDIA LTD. Versus COAL INDIA LIMITED - 2012 (283) E.L.T. 330 (Gau.) Issues Involved:1. Legality of levying 5% excise duty with cess on coal purchased by petitioners.2. Applicability of Government of India's Notification No. 1/2011-C.E., dated 1-3-2011.3. Entitlement of Coal India Ltd. to avail CENVAT Credit under the CENVAT Credit Rules, 2004.4. Petitioners' claim for refund of excess excise duty paid.5. Maintainability of writ petitions in light of alternative remedy under Section 11(B) of the Central Excise Act, 1944.Detailed Analysis:1. Legality of levying 5% excise duty with cess on coal purchased by petitioners:The petitioners, limited companies engaged in coal trading, challenged the imposition of 5% excise duty with cess by Coal India Ltd., arguing it should be 1.03% as per Notification No. 1/2011-C.E., dated 1-3-2011. The court noted that coal falls under Chapter 27 of the Central Excise Tariff Act, 1985, and generally attracts 5% excise duty plus 3% cess on the duty tariff. However, the petitioners argued that they should be charged only 1.03% excise duty since they were not availing of CENVAT Credit.2. Applicability of Government of India's Notification No. 1/2011-C.E., dated 1-3-2011:The notification exempts excisable goods, including coal, from excise duty exceeding 1% ad valorem, provided no CENVAT Credit is availed. The court confirmed that the exemption applies only if the credit of duty on inputs or tax on input services under the CENVAT Credit Rules, 2004, is not taken. The notification was intended to provide a conditional exemption, not a total exemption, from excise duty.3. Entitlement of Coal India Ltd. to avail CENVAT Credit under the CENVAT Credit Rules, 2004:Coal India Ltd. contended that it had availed CENVAT Credit under the CENVAT Credit Rules, 2004, thus making the exemption inapplicable. The court agreed, stating that since Coal India Ltd. decided to avail CENVAT Credit, the excise duty at the rate of 5% plus cess is correctly levied. The court rejected the petitioners' argument that Coal India Ltd. should not be entitled to CENVAT Credit due to negligible inputs in coal manufacturing.4. Petitioners' claim for refund of excess excise duty paid:The petitioners claimed that since they were not availing CENVAT Credit, they should be charged only 1.03% excise duty and sought a refund of the excess amount paid. The court dismissed this claim, emphasizing that the petitioners, being traders and not manufacturers, could not claim the exemption meant for manufacturers who do not avail CENVAT Credit. The court also noted that the petitioners had not contested Coal India Ltd.'s claim of availing CENVAT Credit.5. Maintainability of writ petitions in light of alternative remedy under Section 11(B) of the Central Excise Act, 1944:Coal India Ltd. argued that the petitioners should seek a refund through Section 11(B) of the Central Excise Act, 1944, which provides an alternative remedy. The court agreed, citing precedents that support the requirement to exhaust alternative remedies before approaching the court.Conclusion:The court concluded that Coal India Ltd. is entitled to levy excise duty at the rate of 5.15% (including cess) on coal sold to the petitioners, as the company had decided to avail CENVAT Credit under the CENVAT Credit Rules, 2004. Consequently, the exemption under Notification No. 1/2011-C.E., dated 1-3-2011, was not applicable. The writ petitions were dismissed, with no order as to costs.
TaxTMI 
TaxTMI 
