2017 (1) TMI 459

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.... Railways, East Coast Railways. For manufacturing rail switches, Railways provided free of cost rails to the appellant (which Railways purchased from SAIL) on which excise duty was already paid. That no Cenvat credit is availed by the appellant. 2.1 The Central Government through Ministry of Finance (C.B.E. & C.) passed a Notification being Notification No. 5/2006-C.E. (hereinafter referred to as "the 2006 Notification"). As per Serial No. 30 of the 2006 Notification, excise duty was to be paid on the value of goods excluding the value of free supply of rails, subject to the condition that railway construction materials shall be manufactured out of rails and no Cenvat credit is availed on rails. Ministry of Finance addressed a letter ....

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....and 31-7-2013 be not be demanded along with interest and additional penalty. Subsequent to certain representations made by Ministry of Railways and the concerns raised by the Industry, Ministry of Finance passed a notification being Notification No. 03/2014-C.E., whereby the 2012 Notification was amended and the exemption granted under the 2006 Notification was restored. Thus, Ministry of Finance clarified that the value of Rails has to be excluded from the assessable value of the goods. 2.4 Ministry of Railways wrote a letter to C.B.E. & C. requesting that it be clarified that the value of Rails has to be excluded from the assessable value of the goods for the intervening period as well, i.e., 17-3-2012 to 2-2-2014. Department issued....