TaxTMI 
TaxTMI 
2025 (6) TMI 1805
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....he refund claim was rejected by the adjudicating authority. Aggrieved by the said order, they filed appeal before the learned Commissioner(Appeals), who in turn, upheld the Order-in-Original. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant submits that the refund claim was filed by them on the ground that they had cleared one consignment to M/s. Diamond Shipping Agencies Pvt. Ltd. under SFIS duly issued by JDGFT; authorisation No.No.3510028226 dated 19.11.2009 and No.3510023994 dated 20.06.2008. Consequently, the Deputy Commissioner has given permission to clear the goods without payment of duty by letter dated 20.04.2010. The goods were cleared against Form AR-3A; later re-warehousing certificate has been received from the consignee. However, by mistake, the appellant in their excise invoice paid excise duty on the said goods and also reflected in their ER-1 returns. Alleging that the appellant had not complied with the condition of the Notification No.34/2006-CE dated 14.06.2006 inasmuch as the installation certificate issued by the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise having juri....
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....l Excise Rules, 2001. Further, they have relied upon the following case laws:- i. Munshilal Budshen Vs. CCE, Allahabad [2000(126) ELT 12 (All.)] ii. Hindustan Petroleum Corporation Ltd. Vs. CCE, Mumbai [2011(269) ELT 422 (Tri. Mum.)] iii. Olympic Petro Products Ltd. Vs. CCE, Meerut [2007(213) ELT 401 (Tri. Del.)] 3.3. Learned advocate further submits that the learned Commissioner(Appeals) has erroneously held that the appellant are required to reverse 10% of the value of goods cleared under SFIS in view of Rule 6(3) of Cenvat Credit Rules, 2004 as credit has been availed on inputs used in the manufacture of the said exempted goods. It is his contention that the debit of the scrip for clearance of goods under SFIS cannot be called as exempted goods in view of the judgment in the case of Scania Commercial Vehicles India Private Limited Vs. CCE, Bengaluru-V Commissionerate [2024(1) TMI 445 - CESTAT BANGALORE]. 4. Learned AR for the Revenue reiterates the findings of the learned Commissioner(Appeals). 5. Heard both sides and perused the records. 6. I find that the short issue involved in the present appeal for consideration is whether the appellan....
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....s of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978) subject to the following conditions, namely :- (i) that the said certificate has been issued to a service provider by the Regional Authority and it is produced before the jurisdictional Central Excise Officer at the time of clearance for debit of the duties leviable on the goods, but for this exemption Provided that exemption from duty shall not be admissible if there is insufficient credit in the said certificate for debiting the duties leviable on the goods, but for this exemption; (ii) that the said certificate and goods cleared against it shall not be transferred or sold; Provided that transfer of the said certificate and goods may be allowed subject to actual user condition within the service providers of the group company or managed hotels as defined in paragraph 9.28 and paragraph 9.36 respectively of the Foreign Trade Policy, as the case may be. (iii). that in respect of capital goods, office equipment and professional equipment a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise or an ind....
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....fication No. 92/2004-Cus, dated 10-9-2004 governs imports under SFIS. Vide Notification No 12(RE-2006)/2004-2009, dated 14-6-2006, the Foreign Trade Policy has been amended and a new Para 3.6 4.10 has been inserted to provide that duty free credit scrips earned under the Scheme shall be permitted to be utilized for payment of excise duty in terms of the notification issued by Department of Revenue in this behalf for procurement from domestic sources of such inputs that are permitted for imports under Para 3.6.4.5. Accordingly, Notification No. 34/2006-C.E., dated 14-6-2006 has been issued to permit domestic procurement of goods against scrips issued under SFIS without payment of central excise duty. 2. References have been received from Trade and DGFT to prescribe a procedure for debiting the original scrip issued under SFIS for payment of central excise duty in the case of domestic procurement of goods. The matter has been examined by the Board and it has been decided that the following procedure shall be followed for debiting the original scrip by the Central Excise authorities in such cases. (i) Whenever a holder of scrip issued under SFIS desires to procure go....
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.... appellant has complied with the conditions of the said notification. However, the Department disputed that the appellant had not complied with the condition No.III of the Notification inasmuch as they failed to produce the installation certificate issued by jurisdictional Deputy Commissioner / Assistant Commissioner of Central Excise of the consignee within the prescribed time. The appellant on the contrary claimed that they have produced Chartered Engineer certificate dated 07.06.2010 indicating installation of the machinery before the authorities below which was not accepted by the Department and the Department insisted for production of the certificate from the jurisdictional Deputy Commissioner / Assistant Commissioner which was later procured and submitted by the appellant on 21.04.2011. It was held to be submitted belatedly and beyond six months, accordingly the refund claim was rejected. 10. A plain reading of the Condition No.III of the said Notification reveals that in respect of capital goods, certificate from the jurisdictional Deputy Commissioner / Assistant Commissioner of Central Excise or an independent Chartered Engineer be produced confirming installation and u....