TaxTMI 
TaxTMI 
2018 (5) TMI 472
X X X X Extracts X X X X
X X X X Extracts X X X X
....terms of the said Notification in order to avail 'nil' rate of duty, refined edible oil are required to be manufactured out of refined edible oils (raw materials) on which appropriate duty of excise or additional customs duty has been paid. The appellants received RBD Palmolein oil on which CVD (additional duty of customs) is paid by their customers and they receive the goods on job work basis for packing in their factory. The RBD Palmolein oil after packing and re-packing was cleared without payment of duty by mentioning on the invoices "imported RBD Polmolein oil-CVD paid and packed and sent on job work basis without payment of Central Excise duty". On scrutiny of Bills of entry, it was noticed that the RBD Palmolein oils were imported cl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....15.03 The following goods namely:- (A)All goods other than refined edible oils (B)Refined edible oils (C)Refined edible oils, if manufactured out of refined edible oils on which the appropriate duty of excise under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or, the additional customs duty under the Customs Tariff Act, 1975 (51 of 1975) has already been paid. Nil Re. One per kilo-gram Nil It is the case of the department that debit of DEPB scrip does not amount to payment of duty and therefore, exemption under Notification No. 6/2002. (b) The debit of DEPB Scrip amounts to payment of duty. The Appellant has thereby satisfied the conditions to avail benefit of Notification N....
X X X X Extracts X X X X
X X X X Extracts X X X X
....culars are binding on the Department. (d) It has nowhere been held that payment of duty can only be made vide cash. The condition to be satisfied for availing benefit of Notification No. 6/2002-CE is that duty liability on the imported goods has to be discharged. As can be seen from the abovementioned cases, discharge of duty liability has been done on the imported RDB Palmolein. Thus, the Appellant is eligible to avail benefit under the said Notification and the department is incorrect in alleging otherwise. 3. On the other hand, the Ld. AR, Shri S. Govindarajan, AC, reiterated the findings in the impugned order. 4. Heard both sides. 5. The issue to be decided is whether the central excise duty exemption under Notification No. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....st on warehoused goods is chargeable, if the Customs duty is paid by way of debit in DFPB. 2. The issue was examined and necessary clarification in the matter has been issued vide F. No. 605/85/2006-DBK, dated 21-7-2006 to the Commissioner concerned. Having regard to the general implications of the matter, a copy of the same is enclosed for information and necessary action. 3. In brief, the issue involved is, whether the duty paid through debits under DEPB is to be treated as payment of duty of exemption from duty. Hitherto, the stand taken by the Department was that goods cleared through debit under DEPB are exempted goods and, accordingly, no CENVAT or drawback was allowed for such payments. Para 4.3.5., of the foreign T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....above, the notification issued under DEPB Scheme provides for exemption subject to debit of duties in DEPB scrips. It is thus not a case where the goods are unconditionally exempt from duty. 6. In the light of the position explained above, it is clarified that interest is chargeable on duty paid by way of debit in DEPB on goods cleared from the warehouse." 11. We are informed that in 2008 (223) E.L.T. 287 (Commissioner v. Kanoongo Estate P. Ltd.) has been appealed against. In 2001 (133) E.L.T. 263 and in Pratibha Processors' case, the matter was covered by DEEC Scheme and not DEPB Scheme. It was in those circumstances, that it was held that when no duty is payable, no interest liability would arise. The differences between....