Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2010 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (6) TMI 438 - AT - Central ExciseDemand – deemed credit – Levy of excise duty twice on same goods - appellant had availed the deemed credit based on the challans issued by weavers and while sending the goods to the merchant manufacturer reversed the deemed credit and paid half of deemed credit from PLA - Recovery of the same amount from the appellant would result in levy of excise duty twice on the same excisable goods - levy and collection of Central Excise duty are as per provisions of Section 3 of Central Excise Act, 1944 and nobody can be made to pay duty twice - It is quite possible that the grey fabric goes to more than one job worker. Then deemed credit would be availed by the first job worker and he would reverse deemed credit of 2/3 and pay balance from PLA and second job worker who does further processing would do the same and sent to merchant manufacturer - department has to make a choice between the three persons who will be equally liable - merchant manufacturer has already paid full amount of duty received by them as rebate to the department, the duty demand or demand for cenvat credit from other would amount to recovery of the same amount twice by the Revenue, which is not legal and cannot be permitted - demand for cenvat credit cannot be sustained and set aside
|