2017 (9) TMI 694

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....r Notification 34/2006-CE without payment of duty they are liable to pay 10% of the value of the goods as exempted goods in terms of Rule 6 of Cenvat Credit Rules, 2004. Accordingly the adjudicating authority has confirmed the demand under Rule 14 of the Cenvat Credit Rules, 2004. Being aggrieved by the said order, the respondent filed appeal before the Commissioner (Appeals) who allowed the appeal considering para 3.6.4.10 of Foreign Trade Policy, 2004-09. According to which the holder of the SFIS certificate is allowed to pay duty from the duty credit scrip under SFIS. Therefore he held that the supply of the goods by the respondent is not exempted goods. Aggrieved by the order, Revenue filed this appeal. 2. Shri. A.B. Kulgod, Ld. Asstt.....

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....ods without payment of duty and the duty payable on such goods is debited from the SFIS Scrip by the recipient of the goods. In this position it cannot be said that the goods cleared by the respondent is exempted. This gets clear from paragraph 3.6.4.10 of the Foreign Trade Policy which reads as below: "Utilisation of duty credit scrip shall be permitted for payment of excise duty in terms of DOR notification issued for procurement from the domestic sources as items permitted under para 3.6.4.5" 5.1 As per this para 3.6.4.5 of Foreign Trade Policy, the goods supplied by the respondent is not exempted as duty was admittedly debited by the recipient of the goods. Very same issue has been considered by the Hon'ble Gujarat High Court in the c....