TaxTMI 
TaxTMI 
2019 (2) TMI 936
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....efore exercising the option for exemption of Excise duty, under notification No.8/2003-CE dated 1.3.2003? 2. The facts of the matter are that the appellant are availing the benefit of Notification No.8/2003-CE dated 1.3.2003 as amended. During the Financial Year 2006-07, the appellant procured/purchased the duty paid raw materials and availed the benefit of Cenvat credit facility under the Cenvat Credit Rules, 2004 on the raw materials procured for manufacturing of M.S. Pipes and paying central excise duty at the appropriate rate on the clearances of final products namely M.S. Pipes as well as raw materials after crossing the exemption limit. The appellant vide its letter dated 1.4.2007 informed that during the year 2006-07, the aggregat....
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....der the provisions of section 11AB of Central Excise Act, 1944, and (iii) penalty should not be imposed upon them under the Sec 11AC of Central Excise Act, 1944 read with rule 25 of Central Excise Rules, 2002 for the contravention of Rule 4,5,6 & 8 of Central Excise Rules, 2002 as they have removed the excisable goods without payment of duty from their factory and do not followed the provisions of rules made thereunder, The Adjudicating authority dropped the proceedings vide Order-in- Original dated 2.2.2017 while relying upon the decision of this Tribunal vide order No. A/797/09/SMB/C-IV, dated 15.12.2009 in appellant's own case, on the identical issue, for earlier financial year. The Adjudicating authority also relied upon the decis....
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....Chandigarh vs. CNC Commercial Ltd.; 2008 (224) ELT 239 (P&H) but still the ld. Commissioner did not rely upon the same and rather tried to distinguish them on some flimsy ground. The ld. Authorised Representative appearing on behalf of Revenue defended the findings recorded in the impugned order and after reiterating the same, prayed for dismissal of Appeal. 5. From the tenor of the order passed by the Commissioner (Appeals), I am of the view that the course adopted by him is not justified. Judicial propriety demands that when there is an order of higher forum available, that too in assessee's own case, the same has to be followed by the lower authority unless certain distinguishing features are pointed out by such lower authority or the....
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.... to year and not in terms of Rule 9(2) of Cenvat Credit Rules. There is no reference or incorporation of the condition of Rule 9(2) in those notifications. That apart, Rule 9(2) cannot be interpreted in a manner as to undermine the indefeasibility of Modvat credit. A reading of the said rule would make it clear that what is required in terms of the rule is to determine the Cenvat credit taken on the inputs in stock and debit it from the credit balance, "if any", lying in assessee's credit, and further credit balance, "if any", lapsing and not recall of Modvat credit already utilised correctly. If the Rule contemplated additional cash payment on account of balance in Cenvat credit being insufficient, the Rule would not have qualified the cre....
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....which the credit is related and out of which a final product is manufactured. Therefore, it has been rightly held that the assessee-respondent were not required to reverse the Cenvat credit of Rs. 88,731/- The judgment of the Hon'ble Supreme Court in Dai Ichi Karkaria case has been correctly applied. There is thus no merit in these appeals which are accordingly dismissed." 6. This Tribunal also while deciding the appeal filed by the appellant for the earlier financial year, vide order No.A/797/09/SMB/C-IV, dated 15.12.2009, relied upon the decision of the Hon'ble High Court in the matter of CNC Commercial Ltd.(supra) and held as under:- "5. I have gone through the submissions made by both the parties and find that the case of the resp....