2016 (9) TMI 1389

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2. The brief facts of the case are that the appellants, M/s. Dharampal Satyapal Ltd., are manufacturer of branded Pan Masala. They received unbranded Pan Masala in bulk from their own unit situated at Guwahati and packed them in unit packs. The unbranded Pan Masala attracts Basic Excise Duty, Special Duty, National Calamity Contingent Duty (NCCD), Additional Duty of Excise and Cess. Notification No. 32/99-C.E., dated 8-7-1999, provides for refund of Basic Excise Duty, Special Excise Duty and Additional Excise Duty paid through current account in respect of units in Assam. Notification No. 27/2001, dated 11-5-2001 provides for exemption in respect of NCCD paid through Account Current by the units located in North East, including Ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it of duty paid on inputs and there is no dispute that said NCCD was paid on inputs and there is no prohibition in the Rules for taking credit of such NCCD paid. Rule 12 of Cenvat Credit Rules allows Cenvat credit, which is refunded through said Notification No. 32/99-C.E., but the same is only clarificatory in nature. They further contended that non-mention of Notification No. 27/2001 in said Rule 12 would not lead to an interpretation that Cenvat credit already paid is not admissible to them. The Original Authority could not appreciate the grounds. The original Authority has decided the show cause notice through Order-in-Original No. 06/Addl. Commissioner/08, dated 29-2-2008, wherein Cenvat credit of Rs. 44,48,950/- was disallowed, Rs. 43....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onsideration the rival contentions. The issue before us is whether Cenvat credit of NCCD paid which was subsequently refunded through specific notification will over-ride the provisions of Rule 3 ibid and whether the provisions of Rule 12 will interfere with the admissibility of Cenvat, provided through Rule 3 of Cenvat Credit Rules, 2004. We find that Rule 12 provides that Cenvat credit of duty paid on inputs, which is subsequently refunded through said Notification No. 32/99-C.E., is admissible as if no such refund had been granted to the manufacturer of inputs. The said Rule does not prohibit from any such similarly worded notification having similar provision in respect of some other component of input credit disentitled for such credit....