TaxTMI 
TaxTMI 
2018 (2) TMI 1108
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....ultimately exempt from payment of duty. 2. The facts of the case are that the appellant is manufacturing Printed Laminated Polyester film and Metalised Polyester films and clearing on payment of duty. The appellant is also availing Cenvat credit on inputs as inter-mediate product. Appellant collected a sum of Rs. 12,15,086/- from the customer and that should be deposited in terms of Section 11D of the Central Excise Act, 1944. Equivalent amount of penalty was also imposed on that account. It was also held that since metalized laminated films are not dutiable, therefore, credit taken on inputs is required to be reversed. As during the relevant period, the appellant used granules to manufacture polythene films which in turn, was used for man....
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....metalized/laminated films on payment of duty. That fact has been recorded by the Adjudicating Authority in the impugned order in para 65.14 where he has recorded that in defense it is pointed out that they have not collected any amount from their customers instead they have collected duty of excise and deposited the same to the Government Account. Further, in para 65.15 it is recorded by the Ld. Commissioner that I find that amount collected by M/s. LIPL against the above said clearances has not been collected and is required to credited to the Central Government in terms of provision of section 11D of the Act . In para 65.16 he further recorded that it is further noticed that M/s. LIPL has utilized Cenvat Credit so availed towards making p....
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....mount to manufacture therefore, the appellant is not liable to pay duty. Therefore, the provisions of Section 11D of the Act are not applicable to the facts of this case. Although the appellant has paid to the Central Government what amount is collected from the customers as duty, therefore, the demand under Section 11D of the Act is not sustainable. Consequently, interest is also not payable. ii. ....... iii. Issue No. 3 is whether demand on polythene film manufactured and captively consumed can be confirmed against the appellant or not. Definitely the appellant is required to pay duty on captively processed goods which are liable for duty. But we should not forget the fact that the final product which does not amount to manufacture ha....