2013 (4) TMI 500

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....redit is availed. In course of manufacture of shoelasts, some waste and scrap of plastic arises which was reprocessed to make plastic granules, a part of which is used again in the manufacture of shoelasts and remaining quantity of such granules was cleared on payment of duty to the another unit of the appellant in Halol, Gujarat. During the period of dispute i.e. during period from 2004-2005 to 2008-2009 total duty paid by the appellant on reprocessed granules cleared to Halol unit was Rs. 46,20,507/-. The department was of the view that the reprocessed plastic granules are unconditionally exempt from duty under Notification No. 4/2006-C.E. (Sl. No. 78) and, hence, in terms of the provisions of Explanation (1A) to Section 5A of Central Exc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nitiated vide show cause notice dated 17-3-2010 was dropped. 1.3 The department filed review appeal against the Joint Commissioner's order before the Commissioner, Central Excise (Appeals), who vide order-in-appeal No. 175-CE/APPL/KNP/2011, dated 29-7-2011 set aside the Joint Commissioner's order and allowed the department's appeal. 1.4 Against the above order of the Commissioner (Appeals), this appeal along with stay application has been filed. 2. Heard both the sides in respect of stay application. 3. Shri C. Willingdon, Advocate, the learned Counsel for the appellant, pleaded that the Notification No. 4/2006-C.E. (Sl. No. 78) in respect of reprocessed plastic granules is not an unconditional exemption notification and, hence,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ry thereof may be stayed till the disposal of the appeal. 4. Shri S.R. Meena, the learned Senior Departmental Representative opposed the stay application by reiterating the findings of the Commissioner (Appeals) in the impugned order and emphasised that the Sl. No. 78 of the Notification No. 4/2006-C.E. unconditionally exempts the reprocessed granules, that it is not a conditional exemption notification and, hence, in terms of the provisions of Explanation (1A) to Section 5A(1), the appellant had no option to pay any amount towards duty and, if any, amount has been paid as duty, the same would have to be treated as deposit, that since the reprocessed plastic granules are unconditionally exempt from duty, the same has to be treated as 'ex....