Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 537 - AT - Central ExciseArea based exemption - Benefit under exemption Notification No. 32/99-CE dated July 8, 1999 - correctness or otherwise of availment of cenvat credit - HELD THAT:- Notification No. 32/99-CE dated July 8, 1999 exempted from excise duty and additional excise duty goods, cleared from a unit located in the places specified in the notification situated in the specified States of North East India, from so much of such duties leviable thereon under, inter alia, the Central Excise Act, “as is equivalent to the amount of duty paid by the manufacturer, other than the amount paid by utilisation of cenvat credit under the Cenvat Credit Rules. As per the impugned order Ishaan, by a letter dated 04.07.2002 informed the jurisdictional Assistant Commissioner, the prescribed authority under Notification No. 32/99-CE, that their factory located in the specified area and had started commercial production with effect from 22.03.2002 and requested sanction of eligibility certificate and that the Assistant Commissioner by an order dated 27.09.2002 held that Ishaan is eligible for exemption under the said notification by way of refund of duty paid from account current on the products allowed to be manufactured and cleared; accordingly an amount of ₹ 10,21,26,696/- was refunded to Ishaan during the period from October 2002 to December 2004 for clearances claimed to have been during March 2002 to November 2004 - By the impugned order the Revenue has sought to recover an amount of ₹ 8,92,62,243/- out of the said refunded amount in terms of Section 11A(2) of the Act, pursuant to a show cause notice issued under the Proviso to Section 11A of the Act, as amount wrongly refunded under the said Notification No. 32/99-CE. A further sum of ₹ 53,05,582/- has also been confirmed against Ishaan as wrong cenvat credit availed and utilised in terms of Rule 12/14 of the Cenvat Credit Rules 2002/2004 read with Section 11A of the Act. In the present case, since according to the show cause notice and the impugned order themselves there was no manufacture of the subject goods, there can be no levy and hence no requirement to make payment of any duty of central excise payable in respect of subject machineries under the Act. Consequently, the question of any recovery of “duties of excise” not levied or not paid or short levied or short paid or erroneously refunded in terms of Section 11A(1) of the Act also does not arise. Appeal disposed off.
|