Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1221 - AT - Central ExciseClandestine removal - medicines - it was alleged that the appellant has cleared the above mentioned medicines clandestinely during the period March, 2003 to July, 2004 without reversing the Cenvat Credit @ 8% as required under Rule 6 (3)(b) of the Cenvat Credit Rules, 2002 - Held that: - on the exempted medicines namely Allopurinol & Mica clear during the March, 2003 to July, 2004, the appellant has already reversed the Cenvat Credit attributable to the inputs used in manufacturing of the said medicines along with interest, therefore, no demand is sustainable against the appellant on that ground. We further find that the remaining medicines which are exempted as per the Notification No. 5/99-CE and Notification No. 06/2002, the appellant has already paid the duty @ 8%/16%. The case of the Revenue is that the said duty is required to pay to the Department under Section 11D of the Act. In fact, it is fact on record that the amount which has recovered by the appellant from the buyers towards the duty has already been paid to the Department. This fact is not in dispute, therefore, under Section 11D of the Act, no demand is sustainable against the appellant. As regards the issue that the appellant is required to reverse the 8% of the value of the exempted goods, As it is fact on record that the appellant whatever duties they recovered from the buyers have been paid to the Department, therefore, no demand is sustainable under Section 11D of the Act. Accordingly, the said demand is also set aside. Penalty - Held that: - the appellant was under bona-fide belief and availed the Cenvat Credit. As there is no mala-fide intention, therefore, no penalty is imposable on the appellants - penalty set aside. Appeal allowed - decided in favor of appellant.
|