TaxTMI 
TaxTMI 
2013 (5) TMI 735
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....Rs. 100 lakhs, subject to certain conditions provided therein. 2.1 The petitioner for the clearances of its final product for home consumption, availed of duty exemption benefit flowing from such Notification No. 8/2001. 2.2 The petitioner exported the said goods on or around 14-9-2001 valued at Rs. 15,27,800/-. At the time of clearance of the goods, the petitioner paid excise duty of Rs. 2,44,447/- by availing cenvat credit on capital goods used for manufacturing such product. 2.3 On 20-9-2001, the petitioner filed a rebate claim with the Department seeking rebate of the duty of Rs. 2,44,447/-. Along with such rebate claim, the petitioner produced necessary declarations and documents as per the rules. 2.4 The adjudicating authority, however, issued a show cause notice dated 9-1-2002 and called upon the petitioner why such rebate claim should not be rejected. In the show cause notice, he stated that the petitioner was clearing the goods for domestic as well as for export purpose. The petitioner was availing the benefit of Notification No. 8/2001 by virtue of which, no duty was required to be paid upto clearance of Rs. 1 crore on domestic as well as export clearances. Si....
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....e, he rejected the appeal with following observations : "Rule 5 provides refund of CENVAT credit of duty paid on inputs used in the final product cleared for export and not cenvat credit availed on capital goods. In the premises, the appellant is not entitled for refund of cenvat credit availed on capital goods.". 2.7 Against the order of the appellate authority, the petitioner preferred revision before the Government. The Government rejected the revision petition by an order dated 29-12-2003. The revisional authority substantially approved the interpretation adopted by the adjudicating officer, particularly of clause (iv) of para 2 of the Notification No. 8/2001. The petitioner's interpretation was rejected. Following observations were made : "The appellants submit that, this condition w.r.t. Clearance for home consumption not for export. Govt. observes that, in other words as per this interpretation, this condition says that duty should not be paid by way of utilization of capital goods credit on clearances for home consumption upto Rs. 100 lakhs. But, the Small Scale Exemption notification, to avail the benefit of which, the above is one condition, exempts clearances fo....
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.... and additional duty on clearances made for home consumption of the goods of specified description. In the first paragraph itself, the reference to exemption is to clearances for home consumption. Such exemption, therefore, clearly apply to goods for home consumption and not for export. 6.1 Such exemption was subject to various conditions provided in the notification itself, particularly in para 2 thereof. Relevant conditions read as under : "2. The exemption contained in this notification shall apply subject to the following conditions, namely :- (iii) The manufacturer shall not avail the credit of duty on inputs under rule 57AB or rule 57AK of the Central Excise Rules, 1944, paid on inputs used in the manufacture of the specified goods cleared for home consumption, the aggregate value of first clearances of which, as calculated in the manner specified in the said Table, does not exceed rupees one hundred lakhs. (iv) The manufacturer also does not utilize the credit of duty on capital goods under rule 57AB or rule 57AK of the said rules, paid on capital goods, for payment of duty, if any, on the aforesaid clearances, the aggregate value of first clearances of which doe....
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....exemption is granted to the first clearances upto Rs. 100 lakhs and such exemption is complete without any segregation. In the earlier notifications, however, there were different slabs, for example, in the Notification No. 8/2000 dated 1-3-2000, such exemption was granted fully on first clearances upto an aggregate not exceeding value of Rs. 50 lakhs. Thereafter, a partial exemption was granted for clearances not exceeding Rs. 50 lakhs over and above such initial clearances in which case, the rate of duty payable was 5%. In such notification, condition No. (iv) in para 2 read as under :- "2(iv) The manufacturer also does not utilize the credit of duty under rule 57Q of the said rules, paid on capital goods, for payment of duty, if any, on the aforesaid clearances, the aggregate value of first clearances of which does not exceed rupees one hundred lakhs, as calculated in the manner specified in the said Table." 6.4 It, thus, becomes clear that such condition (iv) in para 2 was necessary when the exemption was granted slab-wise. The term "if any" would, therefore, cover both cases, namely, where the manufacturer enjoys total exemption, his clearances being within the limit of ....