TaxTMI 
TaxTMI 
2016 (3) TMI 260
X X X X Extracts X X X X
X X X X Extracts X X X X
.... final products namely pre-fabricated construction and stationary pre-cooling equipments for cold storage. While clearing the same to their clients, they cleared the same without payment of duty on the strength of C.T. 2 certificate issued by the authorities in-charge of cold storage. It is the case of the Revenue and as confirmed by the lower authorities, that the goods cleared to cold storage purchasers were without payment of duty is exempted and appellant is required to reverse 8% or 10% of the value of the goods cleared to such cold storage consumers while it is the case of appellant that clearances effected by them to cold storage purchasers are not exempted as per the judgement of the Hon'ble Supreme Court in the case of SRF Ltd.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....made under Chapter X procedure or under bond is not same thing as clearances of goods wholly exempt or goods chargeable to nil rate of duty hence provisions of Rule 57C of Central Excise Rules, 1944 are not applicable holding such view, held in favour of the assessee that he need not to reverse 8% / 10% of the value of the goods cleared by them by following Ch. 10 procedure. This order of the Tribunal was upheld by the Apex Court by dismissing the Civil Appeal No. 4095 of 2004 filed by the Revenue. I also find that this Tribunal in the case of Dharamsji Morarji Chemical Co. Ltd. (supra) in Para 7 held as under:- "7. I find that the main contention of the appellant is that provisions of Rule 6 are not applicable to their case as the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3-SC-CX ratio has been laid down in para 8 which is reproduced here as under: "Value is the function of price. In every case in which there is an allegation of evasion, a show cause notice constitutes the foundation on which the demand made by the Department could stand or fall. Rule 57CC deals with adjustment of credit on inputs used in the manufacture of exempted final products. It applies in cases where a manufacturer is engaged in the manufacture of any final product which is chargeable to duty as well as any other final product which is exempted from payment of duty or chargeable to nil rate of duty and the manufacturer takes credit of the specified duty on any inputs, which is used in manufacture of both the above categories ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 57CC. In this case also, the goods cleared by the appellants against CT-3 bond to the fertilizers manufacturers cannot be termed that the sulphuric acid is exempted product or chargeable to nil rate of duty. Hence the provisions of Rule 6 of CCR, 2004 are not applicable to this case. Accordingly, the appellant is not required to reverse 10% of the value of the goods cleared. The impugned order is set aside and the appeal is allowed with consequential relief, if any. 6.1 As regards the judgment relied upon by the learned D.R. in the case of Micro Melt Pvt. Ltd. (supra), I find that the facts in that case were totally different in as much in that case appellant therein had paid duty of 8% of value of finished goods and subsequently sough....