2017 (11) TMI 748

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....are that the appellants have obtained EPCG licenses and procured capital goods against those licenses and some capital goods has been procured domestically on payment of duty as the appellant was having EPCG licenses then they took refund of terminal excise duty paid on domestically procured capital goods. Against the EPCG licenses the appellant discharged their export obligation and got EODC. Thereafter, on 03.05.2008 a fire took place in the factory premises of the appellant, wherein the capital goods were destroyed. The appellant filed insurance claim with the insurance company as per the agreement with the insurance company for insurance of the capital goods in question, as the claim of insurance include excise duty element, which has b....

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....e not applicable to the facts of the present case. It is also contended that appellant has not taken any double benefit of duty paid on these capital goods as while taking refund of terminal excise duty the appellant was under an obligation to export a certain quantity of goods manufactured by using these capital goods which they have discharged and Insurance Company has paid excise duty on account of replacement of capital goods. Therefore, the appellant have not taken any benefit on the excise duty paid by the insurance company. In support of his contentions, the ld. Counsel relied on the decision of the Hon'ble Apex Court in the case of Mafatlal Industries reported in 1997 (89) ELT 247 (S.C.) and Tata Advance Materials Ltd. - 2011 (271) ....

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....person in any manner shall forthwith pay the amount so collected to the credit of the Central Government. 7. On going through said provision, we find that if any person collects any amount in excess of the duty paid on any excisable goods which are wholly exempt. Therefore, it is to be seen whether appellant has collected the amount from insurance company of duty paid on excisable goods. Now question arisen whether the capital goods are excisable goods in the hand of the appellant or not. Admittedly, as per Section 3 of the Central Excise Act, 1944, duty is to be paid by the assessee on manufactured goods. The capital goods in question were never manufactured by the appellant. Therefore, in the hands of appellant the capital goods in que....