TaxTMI 
TaxTMI 
2016 (3) TMI 393
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed the appeal of the Respondent. 2. The fact of the case is that the respondent are the manufacturer of Air Conditioners, Pre-fabricated building consisting of insulated panels etc. falling under Chapter 84 and 94 of the First Schedule to the Central Excise Tariff Act, 1985 and have been availing modvat /Cenvat facility. They were clearing one of their products namely 'Blue Star Pre Fabricated Building consisting of insulated panels' from January, 1999 onwards. The said goods were exempted vide Notification No. 17/98 CE dated 18/9/1998 during the period from 18/9/1998 to February, 1999 and vide Notification No. 5/99 CE dated 28/2/1999 from March, 1999 to February, 2000. The tariff rate on the said goods was 8% during the period 18/9/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,313/- for the period March, 2000 onwards under Section 11D ibid in respect of amount paid under Rule 57CC and alleged to have been collected from the customers. In the adjudication the proposal has been confirmed and following order was passed. 1. I confirm the demand of Rs. 5,94,493/- collected as Central Excise duty on the said goods during the period from January, 1999 to February, 2000 and the amount of Rs. 6,47,313/- paid under erstwhile Rule 57CC of Central Excise Rules, 1944 and recovered from their customers fro the period from March, 2000 to October, 2001 payable to the credit of Central Government under the provisions of Section 11D(1) of the Central Excise Act, 1944. 2. I also confirm the appropriation of amoun....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which was 8%, therefore the whole basis of demand on this issue is not tenable. As regard the demand of Rs. 6,47,313/- for the period from March, 2000 onward under Section 11D solely on the ground that the respondent have recovered this amount, he submit that the 8% amount under Rule 57CC was paid on the invoiced value and the same was not added in the invoice value, hence the amount so paid under Rule 57CC was not recovered from customers. He shown some sample invoices wherein it is very clear that the respondent have not recovered the amount of 8% reversed under Rule 57CC. 5. We have carefully considered the submissions made by both sides. 6. We find that the respondent have paid the excise duty at the tariff rate i.e. 8% despite t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e manufacturer of such excisable goods shall not pay the duty of excise on such goods.] 19a (2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from payment of duty of excise, under circumstances of an exceptional nature to be stated in such order, any excisable goods on which duty of excise is leviable. From the above Section prior to insertion of subsection (1A) w.e.f. 13/5/2005 it was not mandatory for a assessee to avail the exemption notification accordingly it was a option available to the assessee either to avail the exemption or to pay the duty as per rate specified in the Central Excise Tariff. Therefore the revenue cannot insist ....