TaxTMI 
TaxTMI 
2019 (1) TMI 663
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.... challans so as to evade the payment of central excise duty. It was observed that the said job worker was actually supplying sufficient moulds to the appellant in the name of goods being returned under job work challans after reprocessing/ repairing. Resultantly, a SCN No. 3221 dated 27.06.2014 was served upon the appellant proposing the recovery of cenvat credit amounting to Rs. 2,87,806/- and of central excise duty amounting to Rs. 30,06,072/- alongwith interest at appropriate rate and the proportionate penalties. The said proposal was confirmed by the Order-in-Original No. 13 dated 01.07.2015. Being aggrieved, appellant filed an Appeal before Commissioner (Appeals) who vide the Order under challenge i.e. bearing No. 289/2258 dated 12.04.....
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....o. 67/95 dated 16.03.1995 has been issued with a view of dealing with the revenue neutral situation. The authority below has failed to consider the same. Hindustan Copper Ltd. Vs. CCE, Raipur 2006 (206) E.L.T. 276 (Tri. - Del.) is relied upon. Finally it is submitted that the issued being technical and revenue neutral, the malafide intend cannot be alleged on the part of the appellant. As such, the extended period of limitation is not available to the Department that too for denying the substantial benefit merely on account of procedural valuation. Adani Gas Pvt. Ltd. Vs. CCE & ST, Ahmedabad 2017 (349) E.L.T. 349 (Tri. - Ahmd.) and Union of India Vs. Grasim Industries Ltd. 2006 (204) E.L.T. 230 (Raj.) has been relied upon. With these submis....
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.... GENERAL EXEMPTION NO. 6 Exemption to all capital goods and inputs if captively consumed within the factory of production:- (i) capital goods as defined in Rule 57Q of the Central Excise Rules, 1944 manufactured in a factory and used within the factory of production; (ii) goods specified in column (2) of the Table hereto annexed (hereinafter referred to as 'inputs') manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in column (3) of the said Table: from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) : Provided that nothing contained in this notification shall app....
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....eared the waste and scrap under job work challan for intended purpose of further processing like testing, repairing and reconditioning with a view to evade the duty of excise. To our opinion, the said finding would go against the scheme of the aforesaid Notification as it would force the assessee to restore the payment of duty and take credit of duty paid thus availing the same benefit through the circuitous route of credit. Thus, the whole exercise would only cause more elaborate account keeping without any benefit to the Revenue. Further, it is observed that Commissioner(Appeals) while relying upon Rule 16(a) of Central Excise Rules, 2002 has acknowledged that a manufacturer may remove any input received in a factory as such or after bein....
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....e objective of the statute in making out the provision is the determining factor. Central Board of Excise & Customs clearly says that merely procedural lapses be not allowed to defeat the modvat credit benefit, if substantive conditions about payment of duty and user of goods in manufacture of end product in factory are fulfilled. It was held that however substantial benefit should not be denied for the procedural valuation if the substantial liability has been complied with. In view of the admitted facts as mentioned above there is sufficient compliance by the appellant qua the substantial liability as laid in the Notification relied upon is concerned. Mere lack of sending an intimation is a procedure which is mere directry. Denying the su....