2015 (10) TMI 100

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....mical Division of the FACT during the manufacture of Caprolactum, two major bye-products emerge namely Lactum Ammonium Sulphate and Oxime Ammonium Sulphate, which are cleared to their Udyogamandal Division and used in the manufacture of Ammonium Sulphate which is cleared as fertilizer under 'NIL' rate of duty under Notification No. 6/2002, dated 1-3-2002 as amended and Notification No. 4/2006, dated 1-3-2006 till 28-2-2011. This exemption was withdrawn and concessional rate of duty of 1% ad valorem without Cenvat credit facility was introduced with effect from 1-3-2011 by issue of Notification No. 1/2011-C.E. If Cenvat credit is availed, the rate of duty of 0.5% as per Notification No. 2/2011-C.E., dated 1-3-2011. According to the proviso t....

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....12 (279) E.L.T. 194 (H.P.)]. (iii)   Kribhco Shyam Fertilizers Ltd. v. CCE, Lucknow [2013 (31) S.T.R. 79 (Tri.-Del.). 3. Learned AR would submit that the procedure followed by the appellant is not correct at all. He draws our attention to sub-rule 4 of Rule-3 of Cenvat Credit Rules wherein the second proviso which was inserted on 1st March 2011 clearly provided that Cenvat Credit shall not be utilized for payment of any duty of excise on goods in respect of which the benefit of exemption under Notification No. 1/2011-C.E., dated 1st March 2011 is availed. 4. We have considered the submissions made by both sides. According to Notification No. 1/2011, the proviso to the introductory paragraph provided that "nothin....

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....ffect from the 1st day of March 2011, namely :- "Provided further that Cenvat credit shall not be utilized for payment of any duty of excise on goods in respect of which the benefit of an exemption under Notification No. 1/2011-C.E., dated the 1st March 2011 is availed :", It is clear from the reproduced portion of the Rule that according to the proviso, no payment of duty can be made by utilizing the Cenvat Credit on goods in respect of which the benefit of exemption under Notification No. 1/2011-C.E., dated 1-3-2011 is availed. There is absolutely no ambiguity in the provisions of the Rules and the proviso was introduced simultaneously with the Notification. Therefore whether we go by the intention of the legislature or words used i....

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....d continue until the facility available thereto gets worked out or until those goods existed. Therefore, it becomes clear that Section 37 of the Act does not enable the authorities concerned to make a rule which is impugned herein and, therefore, we may have no hesitation to hold that the rule cannot be applied to the goods manufactured prior to 16-3-1995 on which duty had been paid and credit facility thereto has been availed of for the purpose of manufacture of further goods." In our opinion, this judgment is not at all applicable. 7. In the case of Ranbaxy Laboratories Ltd, (supra) Hon'ble High Court of H.P. was considering whether the credit already taken on inputs has to be reversed when final product is exempted. Here also ....