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2019 (7) TMI 250 - AT - CustomsPayment of CVD at exempt rate and CENVAT credit - CVD of 1% /2% of the Additional Duty of Customs on the imported coal - benefit of N/N. 12/2012-Cus dated 17.03.2012 - Department has denied the payment of CVD on exempted rate and the availment of cenvat credit thereupon relying upon the S.No. 67 of Excise Notification No. 12/2012 dated 17.03.2012 - HELD THAT:- The Customs Notification is applicable to the imported coal whereas the Excise Notification is applicable to the domestically manufactured goods. The condition No. 25 of Excise Notification which denies availment of cenvat credit on imports of coal manufactured by the supplier of coal, as has been taken the basis in the Order-in-original, shall therefore be applicable for domestically manufactured goods only and not on the imported coal. Perusal of Excise notification No. 67 further reveal that no such condition is applicable in case of import of coal. Whether under Customs notification against S.No. 67 i.e. while importing the coal, the appellants were entitled to avail the cenvat credit on the amount of CVD paid? - HELD THAT:- The said rule itself clarifies that the cenvat credit of duty of excise is not allowed to be taken when paid on any goods specified under S.No. 67 and 128 of Excise Notification No. 12/2012 dated 17.3.2012. Admittedly, the notification relied upon by the department for denying the impugned benefit to the appellant is Customs Notification No. 12/2012 dated 17.3.2012. The restriction of Rule 3 is not applicable to the said notification - Hon’ble Supreme Court in the case of SRF Ltd. vs. CC Chennai [2015 (318) ELT 607(SC)] has held that Excise Notification No. 12/2012 is applicable only in respect of any digged or manufactured coal and not in respect of imported coal. The import whereof is allowed to have exempted rate of CVD vide Customs Notification No. 12/2012 Cus. The adjudicating authority has committed a legal error while denying the benefit of reduced CVD on imported coal while placing reliance upon the Excise notification for manufacture of coal - appeal allowed - decided in favor of appellant.
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