Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 191 - AT - Central ExciseIncidence of Central Excise Duty - goods manufactured but not cleared as they were destroyed - Whether the appellants were liable to pay duty on the goods which they had manufactured but had not cleared as they were destroyed during the Hudhud cyclone or whether it is sufficient that the appellant had reversed the CENVAT Credit taken on the inputs which have gone into the manufacture of such products? - HELD THAT:- Central Excise duty is a tax levied on the manufacture of goods. Section 3 of Central Excise Act is the charging section which states that there shall be levied and collected a duty of excise to be called CENVAT on all excisable goods which are produced and manufactured in India. Therefore, the levy of Central Excise Duty comes from the manufacture itself. Once the goods are manufactured, levy applies. When it is the duty become payable? - Rule 4 of Central Excise Rules, 2002 - HELD THAT:- While the duty becomes leviable, as soon as the goods are manufactured or produced, it becomes payable when they are removed from the place where they are produced or manufactured. When should be duty which is payable, to be paid? - Rule 8 of the Central Excise Rules 2002 - HELD THAT:- The levy of duty would be as soon as the goods are manufactured or produced. But the duty becomes payable only if the goods are removed from the factory and the duty so payable has to be paid only by 5th to 6th of next month. In the absence of any specific legal provision, duty cannot be demanded on the goods which are lost or destroyed in the factory. It does not matter whether the assessee has sought remission or not. The duty, though leviable, does not become payable in such cases and there is no date by which the said duty has to be paid - the demand of CENVAT Credit on the lost/destroyed goods treating them as final products, is not sustainable. As far as CENVAT on the inputs contained in the final products is concerned, the same has already been reversed by the appellant and he is not contesting the same. Demand set aside - appeal allowed - decided in favor of appellant.
|