AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1404
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....had been received by the appellant on payment of Central Excise duty at full rate i.e., @ 12.36. 2. Periodical Show Cause Notices were issued on the ground that 'Ferro Manganese Slag' falling under TSH No. 26190090 arises as a by-product in the course of manufacture of Iron & Steel. Ferro Manganese Slag, classifiable under Chapter Heading 2619 of CETA, is fully exempted from duty of Excise vide Sl. No. 06 of the Notification No, 04/2006-CE dated 01.03.2006 superseded by Notification No. 12/2012-CE dated 17.03.2012 (Sl. No. 57 of General Exemption No. 50), but M/s. Shyam Sel & Power Ltd. had charged duty from the appellant violating the provisions of Sub-Section (1A) of Section 5A of the Central Excise Act, 1944. Sub-Section (1A) of Section 5A of the Central Excise Act, 1944, states that, where an exemption under Sub -Section (1) of Section 5A in respect of any excisable goods from the whole of duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods. The Board vide its Circular No. 870/8/200-8-CX, dated 16.05.2008 [(226) ELT (T3)], has clarified that CENVAT credit of the amount of....
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.... 2011 to August 2015 - Rs.47,00,405 September 2015 to March 2016 - Rs. 75,755 April 2016 to October 2016 - Rs.14,47,733 November, 2016 to June, 2017 - Rs. 6,52,332 (ii) It is an undisputed fact that M/s Shyam Sel & Power Ltd., P.O -lkra, Jamuria, Distt.- Paschim Barddhaman, W.B. and others have paid excise duty on Ferro Manganese Slag. Copies of a few sample invoices have been enclosed by the appellant and marked as Annexure L. (iii) M/s. Shyam Sel & Power Ltd. and other vendors have deposited the excise duty paid by them in the Government Exchequer under the Head of Excise Duty. If this amount deposited did not represent excise duty then action should have been taken by the Central Excise Range staff in charge of M/s. Shyam Sel & Power Ltd. and others to have this amount deposited under the provisions of Section 11D of the Central Excise Act, 1944. But no such action was taken by the Department in depositing the amounts in terms of Section 11D of the Central Excise Act, 1944. Therefore, the excise duty paid by M/s Shyam Sel & Power Ltd. and others on Ferro Manganese Slag continued to be in the nature excise duty only. (iv) The ....
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....Duty paid at the end of the vendor was not questioned, the confirmed demand for the extended period may be set aside on account of time-bar. 5. The Ld. Authorized Representative appearing for the Revenue submits that the. Board's Circular No. 940/1/2011-CX, dated 14-1-2011, specifically deals with the issue on hand; that this Circular clearly states that the Vendor should not pay the Excise Duty when the same is exempted and if he still pays, the receiver will not be eligible for the CENVAT Credit for the same. Therefore, he justifies the confirmed demand. 6. Heard both the sides and perused the appeal papers and the documents submitted before us. 7. Admittedly, there is no dispute about the fact the goods in question i.e., Ferro Manganese Slag, is an input for the appellant. It is not disputed that they have received the same along with proper Invoice from the Vendors. We have had a look at the sample invoices submitted by them. Some sample invoices are extracted below: - 7.1. From the above invoices, it is clear that the vendors have paid the Excise Duty and have given all the requisite details as are required under Rule 9 of the CCR 2004. There is no dispute about th....
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....ircular No. 940/01/2011-CX dated 14.01.2011 though the Adjudicating Authority has denied the Cenvat Credit but Learned Commissioner (Appeal), in appeals filed by the respondent allowed the appeal therefore the present appeal filed by the revenue. ... ..... 4. We have carefully considered the submission made by both the sides and perused the records. We find that the case can be decided on the first issue assuming the Capital Goods received by the appellant is exempted at the suppliers and we find there is no dispute on the fact that the supplier are registered with Central Excise, they have duly discharged the payment of Excise duty, they have issued invoices and filed their returns to their Jurisdiction Central Excise Officer. The Jurisdictional Central Excise officer of supplier has not whisper a word about alleged wrong assessment of duty. The department had jolly well accepted the Act of the supplier that is payment of Excise Duty. The self-assessment of payment of excise duty has attained finality as no objection was raised by the department against the supplier. Therefore, rightly or wrongly, if the assessment at the supplier's end has been accepted and no o....
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....ofit and Modvat element. Further, the cost so arrived is rounded off to the next higher figure, i.e., for item Code No. T161B06S, the cost of Rs. 56.68 has been rounded off to Rs. 60/- whereas the assessable value declared by the assessee is ranging between Rs. 45.20 to 52.47. 4. The Revenue issued a show cause notice dated 4-11-1999 to the assessee being of the opinion that they have deliberately entered into practice of raising value of semi-finished goods by adding Modvat element and rounding off the value to higher figure so as to pass on the excess Modvat credit. The said notice was, thus, issued to show cause as to why Modvat credit amounting to Rs. 13,08,701/- should not be disallowed under Rule 57-I of the Rules read with proviso to Section 11A(1) of the Central Excise Act, 1944 and to show cause as to why interest and penalty should not be levied and as to why plant, machinery, building etc. should not be confiscated. 5. By the order-in-original dated 30th October 2000, the Commissioner of Central Excise & Customs, Aurangabad confirmed the demand of Rs. 13,08,701/- under Section 11A of the Act and imposed a penalty equivalent to the amount of duty under S....
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....sment of the supplier is taken, Cenvat Credit at the recipient end cannot be disputed, on the ground that the supplier was not supposed to pay duty, may be for various reasons that either the goods is not amount to manufacture, or exempted etc. 4.3 In view of the above legal position, we are of the clear view that the Learned Commissioner (Appeals) has rightly allowed the Cenvat credit on capital goods to the respondent. Hence, the order of the Learned Commissioner is absolutely legal and correct, which does not require any interference. Accordingly, the same is upheld." 7.4. An identical issue decided against the Revenue was challenged by them before the High Court. In the case of Commissioner of CGST & Central Excise, Daman Commissionerate, Vapi Vs Huhtamaki Ppl Ltd. [(2025) 28 Centax 427 (Bom.)], the Hon'ble Bombay High Court has dismissed the Appeal filed by the Revenue holding as under: - "2. The Appellant-Revenue filed this appeal under Section 35G of the Central Excise Act, 1944, proposing to raise the following substantial questions of law arising out of the order dated 20 October 2023 passed by the Tribunal. Substantial Questions of Law "(i) W....
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....he Gujarat High Court, Madras High Court and Punjab and Haryana High Court in paragraphs 6, 8 and 9 of its order and same has not been shows to us has being incorrect or having challenged before the Supreme Court. The Tribunal based on these decisions have stated that it is settled by various High Courts and the Tribunal that even if excise duty is not payable on the product for any reason, but the Assessee has paid the excise duty and said payment is not challenged or questioned then no question can be raised as regards availment of the credit by the recipients of goods. The Tribunal has applied these judgments since the facts were identical and no perversity is shown to us by the Appellant Revenue in this approach of the Tribunal. 8. In our view, for the reason stated above and following decisions of the Co-ordinate Benches of this Court, no substantial questions of law arise from the Tribunal's order dated 20 October 2023, and, therefore, the appeal of the Appellant-Revenue is dismissed." 7.5. The Hyderabad Bench in the case of Neuland Laboratories Ltd. Vs. Commissioner of C.Ex., Hyderabad-I [2015 (317) E.L.T. 705 (Tri.-Bang.), has held as under : "7. Fu....
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....ve accounted for the same in their records and also filed the ER 1 Returns. No scrutiny was taken up to pose query about their taking of CENVAT Credit or the bona fides of the appellant in taking the CENVAT credit, when the same is received along with proper Invoice under Rule 9 of the CENVAT Credit Rules, 2004. Therefore, we hold that the confirmed demand for the extended period is legally not sustainable. We set aside this portion of the confirmed demand on account of time-bar. 10. Thus the Appeals stand allowed. The appellants would be eligible for consequential relief, if any, as per law. (Order pronounced in the open court on 24.09.2025) ============= Document 1 SHYAM SEL & POWER LTD. Regd. Office : 5, Chittaranjan Avenue, Coffea House (S.S. Chamber), 2nd Floor, Kolkata - 700 072, Phone : 40111000, Fax : 40111031 Website : www.shyamgroup.com @ E-mail : [email protected] SHYAM GROUP Duplicate for Transpor voice Not JMP/16125/14-15 TAX ANYGACEALGUM EXCIFEZINVOICE STOCK TRANGER / CONSIGNMENT SALE / SALE / EXPORT / AS SUCH LENNE Data: 26/62/2015 MIX5 : Sfila SELL & POWER LIP, JRERIA, UROAM C.S.T.Act No. : 19531291353 Manga & Add. Jaouria, Sen Fal....
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....DURGAPUR,DIST-BURDWAN. WEST BANGAL, TEL .: 0343-2562776,2564187 FAX: 2566949 SAT No : 19801242053 C.S.T. No : 19801242247 WEST No. : 1960124150 DOMESTIC SALE Invoice No. : 00127 : 14/08/2013 Date Tarrif Heading E.C.C. No. 26.21.9000 ANHCS8998MXM001 Mode of Transport Range Office : CODE NU. 331004,SUPERINTENDENT OF CENTRAL EXCISERANGE 4 , SATYAJIT ROY By Road Cleared under Rule 52A &173G SARANI,CITY CENTER .. Assessee Code No. AAHC58998MXM001 DURGAPUR - 713216 State Code No. Collector Code No. 33 Division Office : CODE NO. 3310.DIVISION III, SATYAJIT ROY Factory Regn No. SARANI,CITY CENTER , DURGAPUR - 713215 : AAHC58998MXM001 PLA No. RG 23 C-II No. RG 23 A-II No. Commissionate : BOUPUR TIN No 19801242053 :W039A/3101 To Truck No. SUPER SMELTERS LTD. (UNIT-III) Transporter : NA JAMURIA INDUSTRIAL ESTATE Destination : JAMURIA RAJARAM DANGA, JAMURIA : SSL/SFAL/MN-SLAG/12-13/001 Dt.12-AUG-1 P.O. No & Date P.O. IKRA Pin:713362 D.O. No & Date : DO13Y-00016 Dt.12-AUG-13 E.C.C. No ANFCS1115FXM003 C.S.T. No VAT. No 19001502013 ....