2023 (9) TMI 716

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....appellant are having their unit at Narendrapur and engaged in the manufacturing of Glocose which is dutiable and Madhu/Honey against which no rate of duty was specified in the First Schedule to the CETA. Apart from the aforementioned activities, the appellant was also engaged in trading goods manufactured by third-parties, which is an exempt service. 3. In order to comply with the provisions of Cenvat Credit Rules, 2004, the appellant did not avail credit of common input services received by them in their unit provisionally on a monthly basis, but finally availed such credit only in the next financial year after actualization of the turnover numbers of such financial year. This continued upto 31.03.2015 and thereafter the appellant start....

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....units in their Production Value Ratio. Thereafter, the appellant applied for the provisions of Rule 6(3)(ii) of the CCR on cenvat credit distributed by the ISD in the ratio of taxable turnover to total turnover during the preceding financial year, on provisional basis. Such availment by the appellant was adjusted basis the final ratio of taxable turnover to total turnover of the financial year, by 30th June of the next financial year. The appellant availed the total credit on advertisement and other services during the period March 2011 to July 2014 of Rs.2,51,95,770/- and during the period from August 2014 to June 2015 Rs.98,55,743/-. Despite following the methodology of availing credit pertaining only to dutiable turnover of the appellant....

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....le to any rate of duty including NIL rate. Leaving a column blank cannot be equated with NIL. Accordingly, honey would not qualify as exempted goods. Therefore, the provisions of rule 6 will not be get attracted thereon. Accordingly, the entire demand so confirmed under Rule 6, on the ground that the honey is excisable and exempted product, ought to be dropped on this ground alone. To support his argument, he relied upon the decision of Hon'ble Allahabad High Court in the case of Gularia Chini Mills v. UOI [2014 (34) S.T.R. 175(All.) [affirmed by the Hon'ble Supreme Court as reported in 2015 (322) ELT 769 (S.C.)] and in the case of Rejasthan Renewable Energy Corporation Limited v. CCE, Jaipur [2023 (4) TMI 440 (CESTAT-New Delhi)]. He also r....

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....apportioned the remaining credit in production value ratio of all the units and such apportionment, only so much credit as proportionate to the taxable turnover of all the units was distributed by the ISD. The credit was not distributed by ISD was reversed at its end. For period post 01.04.2014 except the credit pertained to trading activity, the ISD distributed the entire credit among all the units in their production value ratio and thereafter the appellant themselves applied the provisions of rule 6(3)(ii) of CCR on cenvat credit distributed by the ISD in the ratio of taxable turnover to the total turnover during the preceding financial year on provisional basis and the same was adjusted by the appellant on the basis of final ratio by 30....

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.... said show-cause notices by confirming the demand. 2. In this context, it is informed that a draft show cause notice/statement of demand for an amount of Rs.7,94,15,487/- demanding payment of duty for irregularly availed CENVT Credit for the period from July, 2015 to January, 2017 has been proposed to be issued to you. 3. However, as a step towards trade facilitation and promoting voluntary compliance as well as negating the necessity of issuance of Show Cause Notice in the instant case, the Commissioner of Central Excise, Kolkata-V Commissionerate, is pleased to invite you on 12.06.2017 at 11.30 hrs. for a consultation with regard to the subject issue at his chamber at 3rd Floor, Kendriya Utpad Shulk Bhawan, 180, Rajdanga....

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..... On going through the said pre-show cause notice consultation letter and dropping proceeding against the appellant, it is clear that the appellant is reversing proportionate cenvat credit, as per Rule 6(3)(a) therefore appellant is not required to pay 6% of the value of Honey cleared by them. 13. We further find force in the argument advanced by the Ld. Counsel for the appellant that Honey is not an exempted goods. In fact, no duty is payable on honey as the same is classifiable under CTH 0409 00 00 of CETA, 1985, where no rate of duty is mentioned. That does not mean that Honey becomes exempted as held by the Hon'ble Allahabad High Court in the case of Gularia Chini Mills (supra), wherein the Hon'ble High Court has observed as under :-....