TaxTMI 
TaxTMI 
2015 (11) TMI 712
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....s that the goods are covered by serial No. 90 and, therefore, they cannot pay duty on the initial clearance of 3500 MT of craft paper. The case was adjudicated by the Commissioner who vide the impugned order passed the following order. "i. I order debit of the Cenvat credit of the Central Excise duty involved on the inputs lying in stock as such, in semi-finished goods and in finished goods as on 01/03/2008 amounting o Rs. 4,41,825/- (Basic), Rs. 8,836/- (P.Ed. Cess), and Rs. 4,419/- (SHE Cess), totaling to Rs. 4,55,080/- from the assessees Cenvat account balance of Rs. 9,22,342/- (Basic), Rs. 17,709/- P.Ed. Cess), Rs. Nil (SHE Cess) totaling to Rs. 9,40,051/- and balance amount of Rs. 4,80,517/- (Basic) Rs. 8,873/- (P.Ed. C....
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....ty nine thousand seventeen only) paid by the assessee as Central Excise duty, P.Ed. Cess, SHE Cess raised in terms of Section 11D of the Central Excise Act, 1944. v. I order for the recovery of the interest at appropriate rate on the amounts mentioned at Sr. No. ii to iii under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. vi. I impose a penalty of Rs. 1,31,011/- (Rupees one lakh thirty one thousand eleven only) for demand confirmed at Sr. No. ii above and a penalty of Rs. 6,92,803/- (Rupees six lakh ninety two thousand eight hundred three only) for demand confirmed at Sr. No. iii above respectively, totally amounting to Rs. 8,23,814/- (Rupees eight lakhs twenty three thousand....
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....refrom cleared for home consumption from a factory, in any financial year, up to first clearances of an aggregate quantity not exceeding 3500 Metric Tonnes. The exemption shall not be applicable to a manufacturer of the said goods who avails of the exemption under the notification of the Government of India in the Ministry of Finance and Company Affairs (Department of Revenue) No. 8/2003-Central Excise, dated the 1st March, 2003. Explanation.- For removal of doubts, it is hereby clarified that the first clearances of an aggregate quantity not exceeding 3500 metric tonnes shall not include clearances of any paper and paperboard or articles made therefrom which attract nil rate of duty or are exempt from the whole of excise ....
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....The Revenues contention is that for the initial clearance of 3500 MT, the rate of duty is nil and there are no conditions for the said clearance and hence the provisions of Section 5A(1A) will come into play. The relevant portion of Section 5A is reproduced below:- SECTION 5A - Power to grant exemption from duty of excise. (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon: ....