2019 (1) TMI 1223

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....onsideration are appellants are manufacturers of biscuits and are subject to valuation under Section 4A of the Central Excise Act 1944. In terms of Notification No. 3/2007, as amended by Notification No. 22/2007, the biscuits with MRP of less than Rs. 50/- and Rs. 100/- per kg were exempted from payment of excise duty when cleared for domestic market. Appellant here availed the said exemption Notification when they cleared the biscuits in domestic market but in the case of export of goods, they valued the same as per the provisions of Section 4 of the Central Excise Act 1944 and claimed rebate of excise duty paid as the exemption was not available for export of goods. Lower authorities issued a show-cause notice to the appellant on the grou....

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....r reversal of CENVAT credit taken on inputs and input services and capital goods used in exported quantity of the biscuits which is considered as exempted by the authorities. He would submit that since the adjudicating authority has already permitted them to avail CENVAT credit on inputs and input services, they are not challenging that portion of the order. He would draw our attention to paragraph No 33 of the impugned order and submit that in this paragraph, the adjudicating authority has denied them the CENVAT credit on the capital goods which is incorrect. He would submit that provisions of availment of CENVAT credit on capital goods are very clear. He would submit that the same capital goods are used by the appellant for manufacturing ....

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....er of the adjudicating authority is clearly beyond the scope of the show-cause notice as these were the reasons given for seeking rejection of refund claims. Accordingly, the following portion in the order which is reproduced herein below is expunged... "Since the proceedings are only on the question of admissibility of the credit on inputs and input services, further consequential action under Rule 5 of the CCR, 2004 will be taken by the jurisdictional Assistant/Deputy Commissioner as appropriate under the provisions contained therein" As regards the denial of CENVAT Credit on the capital goods, we find that the adjudicating authority in paragraph No 33 has recorded the following: "33. In the show cause notice, it is proposed to deny th....