TaxTMI 
TaxTMI 
2013 (4) TMI 532
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.... that even after remission of duty upon destruction of final product, the manufacturer is not required to reverse the Cenvat Credit on the inputs used in manufacturing such final product?" 2. The referring Division Bench took note of the fact that similar issue had come up before the Court in the earlier two Division Bench decisions, one in the case of GDN Garments (supra) and the other in the case of Biopac India Corporation Ltd. (supra) 3. In the case of GDN Garments (supra), the Division Bench was of the view that on a plain reading of the order of the Tribunal impugned in the said appeal, it was apparent that the Tribunal while holding that cenvat credit in respect of inputs contained in finished/semi-finished goods could not be demanded and the Tribunal had followed the decision of the Larger Bench of the Tribunal. Consequently, according to the said Division Bench, in the absence of any distinguishing feature having been pointed out on behalf of the Revenue, no infirmity could be found in the approach adopted by the Tribunal. The said Division Bench, therefore was of the opinion that the order impugned in the said appeal did not give rise to any question of law, much le....
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.... the raw material or the input was used in manufacturing of a final product which was neither exempt from duty nor carried nil rate of duty would also require a closer scrutiny. The referring Division Bench further noted the additional contention of the assesse that sub-rule 5 (C) of Rule 3 of Cenvat Credit Rules having been introduced with effect from 7th September, 2007, the question whether for the period prior to such date, the requirement of reversal of Cenvat Credit would arise or not would also be met with if such rule was held to be clarificatory or declaratory in nature. The referring Division Bench further recorded that under the said newly introduced sub- rule, it was provided that when on the goods manufactured or produced by the assesse, the payment of duty was ordered to be remitted under Rule 21 of the Central Excise Rules, the Cenvat Credit taken on the inputs used in the manufacture or production of said goods should be reversed. Thus, accordingly to the referring division Bench, at least from 7th September, 2007, the legislative position has become amply clear, however the referring Division Bench also took note of the fact that whether it could be said that prior....
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....nbsp; (viia) The additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act: Provided that a provider of taxable service shall not be eligible to take credit of such additional duty; (viii) The additional duty of excise, levialbe under section 157 of the Finance Act, 2003 (32 of 2003); (ix) The service tax leviable under section 66 of the Finance Act; (x) The Education Cess on taxable service leviable under section 91 with section 95 of the Finance (No. 2) Act, 2004 (23 of 2004): and (xa) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); (xi) The additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005); Provided that the CENVAT Credit shall be allowed to be taken of the amount equal to central excise duty paid on the capital goods at the time of debonding of the unit in terms of the para 8 of Notification No. 22/2003- Central Excise, published in the Gazette of India, Part-II, Section3, sub- section (i), vide number G.S.R. 265(....
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....ion "Commissioner" the expression "Joint Commissioner of Central Excise or Additional Commissioner of Central Excise, as the case may be" has been substituted" 11. Mr. Parikh and Mr. Ravani, the learned counsel appearing on behalf of the Revenue in these matters, strenuously contended before us that the Cenvat Credit is made available to a manufacture using duty paid inputs for manufacture of dutiable final product in order to avoid cascading effect of the excise duty. Accordingly to them, once the manufacturer is granted remission of the duty on the final product on account of destruction of the final product, the duty element of such final product is thus waived. The learned counsel for the Revenue contend that once the respondent is permitted to retain the cenvat credit on the inputs used in manufacturing such final product, though the final product has been exempted from duty, it would amount to conferment of double benefit to the assess. The learned counsel for the Revenue contend that it was never the intention of the Legislature to confer such benefits the ultimate product has been made duty free. 12. The learned counsel for the appellants further contend that by intro....
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....wed to utilize the duty paid on inputs by taking the same from the duty payable on the final product subject to certain procedures prescribed under the Rules. It is only a benefit available to the manufacturer to utilize the duty paid on the inputs for payment of duty on the final product subject to the procedure laid down in the Rules. It does not directly affect or reduce the assessable value automatically. It , however will result in reduction in the cost of final product to the extent of the credit but will not automatically reduce the assessable value which is to be determined in accordance with the provisions of the Act and the credit as provided by Rules cannot have any overriding effect on the provisions of the Act. 15. We find substance in the contention of Mr. Dave that in a taxing statute one has to look at what is exactly or clearly stated and there is no room for ascertaining any intendment of the legislature. It is well known that there is no equity about a tax and there is also no presumption as to tax. Over and above, nothing can be read in and nothing can be implied from a taxing statue. One must look fairly at the language used [Baidyanath Ayurved Bhawan (P) lt....