2025 (5) TMI 642

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.... of the Central Excise Tariff Act, 1985 and availing exemption under Notification No. 39/2001-CE dated 31.07.2021. This exemption was available for a period of 5 years to new units set up in Kutch District not later than 31st December, 2005. 2. As per this notification, the appellant commenced commercial production on 27.03.2005 and thus were eligible for exemption till 26.03.2010. As per Notification No. 16/2008 (NT) dated 27.03.2008, the appellant was eligible for refund at the rate of 39% of the Gross Duty paid. They were filing rebate claims with the proper officer who was sanctioning the same but he restricted the payment of rebate in cash to the extent of FOB value and ordered for credit of the balance amount in their Cenvat Credit....

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....te orders passed in 2007 and 2008 before the Commissioner (Appeals) which were rejected in 2008. The said orders were challenged before the Joint Secretary to the Government of India who vide common order dated 20.10.2010 remanded the matter back to the adjudicating authority. However, due to non availability of fund, they availed the balance amount of rebate in their Cenvat Credit account on 30/31st March, 2010. There is nothing on record to suggest that the appellant had balance in Cenvat Credit accounts which were not utilized by them and duty was paid in cash through PLA as alleged in the show cause notice. The charges of the department are frivolous and liable to be dropped. 3.1 Hon'ble Gujarat High Court in their own case reported ....

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....esenting the department reiterated the finding of the lower authority and emphasized that the appellant had wrongly taken the credit of balance amount of rebate in their cenvat account on 30/31st March, 2010 after exemption period was over on 27.03.2010. Had they availed Cenvat Credit soon after issue of the rebate sanction orders, that credit balance would have been utilized for payment of duty and less cash rebate would have been sanctioned. He justified confirmation of demand of Rs. 29.68 Lakhs along with interest and equal penalty. He also justified invocation of extended period on the ground that the appellant voluntarily availed the Cenvat Credit and the facts came to the notice of the department when officers scrutinized their Cenvat....