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2016 (2) TMI 1360 - AT - Central ExciseLevy of Central Excise duty - Shortage of inputs on which cenvat credit has been availed (no manufacture of such inputs) - demand of duty on insurance charge, handling charge, storage, packing and forwarding charges - HELD THAT:- There are force in the arguments of the Ld. Counsel that no Central Excise duty can be levied on clearance of inputs on the ground that there is shortage. Central Excise duty is leviable on manufacture, and there is no manufacture of inputs in the instance case. Hence levy of Central Excise duty on the value on such inputs has no sanction of law and therefore cannot be sustained. As regards the demand of duty on insurance charge, handling charge, storage, packing and forwarding charges, it is observed that these activities pertain to post manufacturing and post clearance of the goods. Such amounts are not includable in the assessable value for determining Central Excise duty. Therefore, the demand in such respects are also not sustainable. The impugned orders of lower authorities are found to be non-sustainable and hence set aside - Appeal allowed.
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