2014 (4) TMI 1068

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....and penalty of equal amount. 2. On scrutiny of the ER-2 returns covering the period January, 2011 to February, 2011 the petitioner was seen to have remitted NCCD of Rs. 2,11,93,160/- utilising credit of Service Tax remitted by it on input services utilised for manufacture of mobile handsets. Excise duty on manufacture of mobile handsets was exempted from Excise duty under Notification No. 6/2006. NCCD however was exigible liable to be remitted. 3. Proceedings were therefore initiated for recovery of NCCD on the premise that the petitioner was disentitled to remit its NCCD liability by utilisation of credit on service tax remitted on its input services, in view of the provisions of the fourth proviso to Rule 3(4) of the Cenvat Cr....

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....of final products cleared after availing of the exemption under (specified) notifications of the Central Government, shall, respectively be utilised only for payment of duty on final products, in respect of which such exemption under the respective notifications is availed. 5. The competing interpretations that that are proffered in the substantive appeal are on the fourth proviso to Rule 3(4). This provision enjoins that Cenvat credit of any duty specified in sub-rule (1), except NCCD on item (5) thereof, shall not be utilised for payment of NCCD on goods falling under Tariff Items 8517 12 10 and 8517 12 90 of the First Schedule of the Central Excise Tariff Act. 6. That the appellant is a manufacturer of goods falling under Tar....

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....iptions" in Section 6, have different connotations. It is also a generally accepted principle of statutory interpretation that where different expressions are used in the same unit of construction i.e. a Statute and the context signals distinct legislative intent, the interpreter is required to give effect to the legislative intention. 8. Learned DR would invite us to observations in the full Bench decision of the Delhi High Court in Bombay Conductors and Electricals Ltd. v. Government of India and Others - 1986 (23) E.L.T. 87 (Del.). At para 19 of this judgment the Court observed that in a general sense, tax would be contribution imposed by the Government upon individuals for use and service of the State; whether under the name of to....