TaxTMI 
TaxTMI 
2024 (11) TMI 4
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....liance with the Central Excise laws are registered with jurisdictional Central Excise authorities holding Registration Certificate No. AAACC145013XM013. They have been filing periodical Central Excise returns as a manufacturer of excisable goods. The appellants also avail CENVAT credit of the duty paid on the inputs/ capital goods under the provisions of CENVAT Credit Rules, 2004 (CCR). 2.3 The appellants being a 100% EOU procured duty free inputs and capital goods by availing duty exemption in terms of Notifications No.22/2003-CE and No. 52/2013-Customs, both dated 31.03.2003, as amended. Some of the inputs, imported as well as indigenous, were procured on payment of duty upon which CENVAT credit was availed under the provisions of CCR. The CENVAT credit so availed, was utilized by the appellants for payment of duty on finished goods and removal of inputs and capital goods as such into Domestic Tariff Area (DTA). During the period October, 2007 to April, 2009, the appellants have cleared certain inputs, which have been earlier procured without payment of duty against CT-3 certificate, into DTA by debiting the duty payable thereon from the CENVAT credit account. The Department had....
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....f inputs as such which had been procured duty free. He further stated that the issue in dispute has already been decided in favour of the appellants in the following cases: (i) Commissioner of C. Ex. & Customs, Visakhapatnam Vs. Matrix Laboratories Ltd. - 2012 (281) E.L.T. 569; (ii) CC&CE, Hyderabad-IV Vs. Hetero Labs Ltd. - 2017 (5) TMI 1338 - CESTAT Hyderabad; (iii) Matrix Laboratories Ltd. and Mylan Laboratories Ltd. Vs. Commissioner of Central Excise, Medchal GST - 2023 (6) TMI 458 - CESTAT Hyderabad. 3.2 With respect to the impugned order, learned Advocate stated that it did not take into consideration that central excise duty was already paid once by the debiting the CENVAT credit account and the confirmation of the demand would lead to a situation of double taxation and the same goods. 3.3 Learned Advocate further submitted all facts were within the knowledge of the Department and every clearance of duty-free inputs into DTA was made after obtaining specific approval of the jurisdictional Central Excise Officers. Further, he stated that in the periodical returns filed before the Department, all the relevant details of such clearances have also been mentioned and ther....
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....e on any final product; or (b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or (c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or (d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or (e) service tax on any output service:...." Central Excise Act, 1944 "Section 3. Duty specified in the Fourth Schedule to be levied.- (1) There shall be levied and collected in such manner as may be prescribed a duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable goods (excluding goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the Fourth Schedule: Provided that the duty of excise which shall be levied and collected on any excisable goods which are produced or manufactured by a hundred per cent export oriented undertaking and brought to any other place in India, shall be an amount equal to the aggregate of the duties of customs which would be leviable under the Customs Act, 1962 (52 of 1962) or any other law for th....
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....the appellant; which upon removal as such, from the 100% EOU unit to DTA, could not have been paid with an amount equivalent to such CENVAT credit. Therefore, we are of the considered opinion, that the provisions of Rule 3(4) of CCR does not permit the CENVAT credit taken on duty paid input and such credit lying in the appellants' aggregated CENVAT credit account, to be utilised for payment of an amount equivalent to CENVAT credit on non- duty paid input (procured duty free under CT-3 certificate), when removed as such by a 100% EOU unit. 8.2 The facts are not in dispute that the SCN was issued on 30.08.2012 covering the period from October, 2007 to April, 2009 by invoking extended period on the ground that the appellants have done this act of clearances without the knowledge of the Department. On the other hand, the appellants have submitted individual application providing the details of the specific input along with its description; quantity of input received in the 100% EOU unit and quantity to be cleared, as such; and the jurisdictional Assistant Commissioner, Rasayani Central Excise Division have given permission for clearance of inputs as such, upon payment of applicable du....