2018 (8) TMI 469

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Finance Act, 2005 and education cess payable on such additional duty. Summary of the 3 appeals are as under: Sl. No. Appeal No. Appellant Period of Dispute from 1. E/617/2008 Dharampal Premchand Ltd. 01.03.2005 to 28.02.2007 2. E/14/2008 Dharampal Satyapal 01.03.2005 to 28.02.2007 3. E/26/2008 Dharampal Satyapal 01.03.2005 to 28.02.2007 The appellants availed cenvat credit on the basic excise duty and other dues paid on the inputs and capital goods. In terms of the notification, the appellants were required to deposit money equivalent to the amount of exemption of excise duty availed, in an Escrow Account, and thereafter, the money deposited was required to be invested in plant and machinery in a manufacturing unit or infrastructure of civil works or special project located in North Eastern states. The notification provided the manner in which the amount was to be deposited, including its periodicity, and the manner in which the amount could be withdrawn from the Escrow account and the manner in which investment was to be made for the specified purposes. Notification No.8/2004-CE dated 21.01.2004, as amended by Notification No.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ture. Ld. Advocate also argued on the point of limitation and submitted that to invoke extended period of limitation, there has to be element of fraud, suppression etc. with an intent to evade payment of excise duty and the show cause notice does not raise any such allegation and accordingly, the extended period of limitation cannot be invoked. More so, taking cenvat credit is evident from monthly RG-23 A/C Part-II, ER-1 Returns and accordingly the department at all points of time was aware that the appellants have taken cenvat credit on inputs and capital goods. 3. Ld. Special Counsel appearing on behalf of the respondent Revenue reiterates the discussions and findings of the Adjudicating Authority. 4. Heard both sides and perused the appeal records. 5. For better appreciation of facts Notification No.8/2004-C.E., dated 21.01.2004 (supra) is reproduced: "Notification No. 8/2004-C.E., dated 21.1.2004 In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), and sub-section (3) of Sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of six months from the end of each quarter; (D) the manufacturer shall provide all details relating to the investment made in terms of condition (B), within one month after the expiry of the period of six months referred to in condition (C), to a Committee consisting of, the Chief Commissioner of Central Excise, Shillong, the Principal Secretary of the Department of Industry of the State concerned, in which the unit is located and the Principal Secretary of the Department of Industry of the State in which the investment is made, and shall have to prove to the satisfaction of the said Committee that the investment had been made for the purpose specified in condition (B); (E) if the Committee referred to in condition (D) is satisfied that the investment as specified in condition (B), has been made, it shall issue a certificate to this effect to the manufacturer within a period of three weeks after the expiry of the one month referred to in condition (D), which shall be produced by the manufacturer, within a period of two weeks from the date of issue of such certificate, to the jurisdictional Central Excise Officer; (F) the investment made under this notification shall not be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4 dated 09.07.2004. It is the case of the appellant, that all through the intention of the Government was to grant exemption, in respect of North East, provided by way of refund of excise duty or by way of investment of excise duty in the North East. 7. We observe that the permissibility of the Modvat credit or Cenvat credit has been a common feature of different notifications in respect of duty exemption for North East. This was in our view to avoid cascading effect of the input duty. We find that even though the basic excise duty was not applicable to specified tobacco products and only the National Calamity Contingent Duty and the Education Cess was applicable, and the scheme of exemption all along permitted the Modvat credit or the Cenvat credit of the duty paid on the inputs or the capital goods. 8. We observe that under the Cenvat Credit Rules, the credit is admissible as soon as the essential conditions are specified. In the case of National Calamity Contingent Duty (NCCD), it is the condition that credit of no duty, other than the credit in respect of NCCD itself can be used for payment of such duty under Rule 3(4) of the Cenvat Credit Rules, 2004. The definition of e....