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2013 (6) TMI 2 - ALLAHABAD HIGH COURTLevy of excise duty @1% or 5% on exempted goods vide Finance Act, 2011 - petition by the traders - levy on purchase of coal - held that:- Division Bench of Gauhati High Court, Guwahati has held that, "It is clear that the appellants are only traders purchasing manufactured goods having no liability to pay central excise duty. Their liability, if any, could arise only on manufacturing and in respect of such liability claim for Cenvat Credit could be made. Till manufacturing was done, question of Cenvat Credit did not arise nor question of exercising option arises. Trader was liable to pay duty element to seller under a contract. The Coal India opted for availing CENVAT facility in respect of inputs used by it and not to avail of concessional rate of exercise duty in terms of notification dated 1-3-2011. In such a situation, Coal India could not be disentitled from reimbursing itself of the central excise duty paid by it." - Decision in ANMOL INDIA LTD. Versus COAL INDIA LIMITED [2012 (11) TMI 817 - GAUHATI HIGH COURT] was upheld. Only 10% of the coal is sold by Coal India Limited to the traders. The Coal India Limited has decided to avail CENVAT credit under the CENVAT Credit Rules, 2004 in order to avoid the cascading effect of the central excise duty, and to ultimate benefits to the end users of 90% of the coal. - Decided against the traders.
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