TaxTMI 
TaxTMI 
2024 (11) TMI 6
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..../39/Bel-I/RIII/Talreja/COMMR/ SFA/2016-17 dated 08th March 2017] of Commissioner of Central Excise, fastening duty liability of Rs. 19,79,86,930/- for November 2011 to August 2016 under section 11A of Central Excise Act, 1944, along with applicable interest under section 11AA of Central Excise Act, 1944, and imposing penalty of like amount under rule 25 of Central Excise Rules, 2002 besides imposing penalty of Rs. 2,00,00,000 on Shri Manish Rupani under Rule 26 of Central Excise Rules, 2002, is the chargeability to duty, by denial of benefit of notification no. 30/2004-CE dated 9th July 2004 on the ground that the condition of non-availment of CENVAT credit therein had been breached in procurement of 'granules', 'ANTISTAT 008' and 'EUTEX OB....
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....ithout payment of duty in accordance with entitlement to the impugned notification. It was also submitted that credit of Rs. 1,35,42,984 had been availed on the goods and services procured by them and that they had not taken credit of Rs. 78,52,287 on chemicals and Rs. 7,40,649 used directly in manufacture of finished products. It was further submitted that the total credit incolved in the three items in dispute was Rs. 3,10,020 which had, since, been reversed. 5. We have heard Learned Authorised Representative. 6. It is not in dispute that the appellant had cleared all final product by availing exemption in the impugned notification and that such exemption is not available in the event that CENVAT credit had been taken on the inputs used....
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.... "6. Drawing similar analogy we consider that subject to the reversal of Modvat credit taken with regard to the inputs which were utilised in the manufacture of duty free goods, the manufacturer could avail of the Modvat credit as well as full duty exemption under applicable small scale exemption notification with regard to some specified goods. Reference is answered accordingly. 7. As a result the impugned order-in-appeal dated 28-1-1999 passed by the Central Excise is set aside and the appeal of Franco Italian Company (supra) is allowed subject to the conditions that Modvat credit taken of the duty paid on the inputs which were utilised in the manufacture of duty free goods, is reversed." 18. In view of the above decision we are of t....
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....sion in the case of ICON Pharma and Surgical (P) Ltd. - 2000 (40) RLT 918 has held that reversal on inputs credit should have been done before removal of the bottles. In our opinion the Tribunal has completely misunderstood the decision in the case of Chandrapur Magnet Wires Ltd. (supra) in which the Supreme Court has quoted the Circular issued by the Ministry of Finance, being Circular No. 22/8/86, dated 10-4-1986. In Para 5 of the said Circular it was mentioned that the duty paid in the inputs used should be debited, before removal of such exempted final products. Since the Circular in that case required reversal of the credit before removal of the final product, hence the Supreme Court interpreting the said circular has mentioned that th....
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....ority decision upheld the argument of the assessee therein and held that reversal of credit subsequent to the clearance of exempted product is in line with the ratio of the Supreme Court judgment laid down in Chandrapur Magnet Wires Co. (supra). 26. Thus all the Division Benches of the Tribunal have been following the larger Bench decision and have taken a consistent view that reversal of the credit can be made even subsequent to the clearance of the final products. The impugned order dated 1-10-2003 appears to be the only order which is contrary to the consistent view taken so far. 27. In another case of M/s. High Line Pen v. CCE Final Order No. 359/2003-NBA, dated 24-7-2003 [2003 (158) ELT 168 (Tri.)] the appellate Tribunal again took....