TaxTMI 
TaxTMI 
2019 (6) TMI 191
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....tems of demand as follows: S.No. Heading Demand under SCN As per OIO As per OIA Paid before issue of SCN and appropriated Interest Penalty 1. Short payment of duty 1643 1643 112 paid and appropriated 1643 Penalty waived - Dept. is not in appeal 2. Irregular availment of CENVAT 114439 114439 0 374040 Penalty waived - Dept. is not in Appeal 3. Irregular availment of CENVAT 117724 117724 0 4. Excess Credit of CENVAT 515917 515917 0 5. Non payment of CENVAT Credit 1203530 1063070 Held as payable 601766 1203530 Demand confirmed Interest confirmed ....
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....bitable was only Rs. 10,63,070/- which they have debited. Further, a penalty of Rs. 6,01,766/- was also imposed upon them with respect to this component of demand. He also shows the documents relating to the settlement of their insurance claim which show that although they claimed an amount of Rs. 97,37,301/-, the actual amount sanctioned by the Insurance Company was only Rs. 77,04,467/-. After debiting some amount towards under-insurance they were actually paid an amount of Rs. 55,20,548/- only. He would urge that no demand can be raised only on the basis of their insurance claim, especially when the claim clearly indicates some amount as overhead charges. No CENVAT Credit was, evidently, availed on the overhead charges. Therefore, their a....
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....tion of the Bench to the various products on which demand was raised and a print out of the website of the company which shows that these products were their final products. If the goods were not destroyed in the cyclone, they would have been able to sell the goods as their final products. In fact, the Insurance claim filed by the appellant was also for their final products. Therefore, duty has to be paid on the final products as per the demand. It is true, that the appellant has reversed the CENVAT Credit on the inputs which have gone to the manufacture of these final products and this amount has been appropriated towards the demand raised. Therefore, there is no infirmity or incorrectness in the impugned order. He prayed that the appeals ....
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....ecomes leviable, as soon as the goods are manufactured or produced, it becomes payable when they are removed from the place where they are produced or manufactured. 9. The next question is when should be duty which is payable, to be paid. Rule 8 of the Central Excise Rules 2002 provides that "the duty on goods removed from the factory or Warehouse during a month shall be paid by 6th of the following month, if the duty is paid electronically through internet banking and by 5th of the following month in any other case". From these provisions, it is clear that the levy of duty would be as soon as the goods are manufactured or produced. But the duty becomes payable only if the goods are removed from the factory and the duty so payable has to....
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....en is written off fully in the books of accounts, then the manufacturer is required to reverse the credit taken on the said input. As far as finished goods in concerned, it is stated that excise duty is chargeable on the activity of manufacture or production. Even though liability for payment of tax has been postponed to the time of removal of goods for the factory, but still the legal liability to pay the excise duty has been fastened on the goods, when it has been manufactured or produced. Therefore, normally all goods manufactured suffer excise duty at the time of removal, but if the manufactured goods are destroyed due to natural causes etc., Rule 21 of Central Excise Rules, 2002, provides for remission of duty. Further, Rule 3(5C) of C....
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....ifies that as regards the working progress, if it has reached the stage when it can be considered as manufactured goods, the same treatment as is applicable to finished goods discussed above would apply. However, if the activity carried out on WIP cannot be considered as manufacture of goods, they should be considered as inputs and the CENVAT Credit has to be reversed. What the Board circular does not clarify is under what rule or section the duty becomes payable. There is no doubt that if the goods are manufactured, the duty is leviable but it becomes payable as per Rule 4 only and the payment has to be made by 5th or 6th of the following month. As long as the goods are not removed at all and are lying in the factory, no duty is payable at....