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2023 (9) TMI 5 - AT - Central ExciseRefund of excise duty payable on value addition - Area based exemption - Contravention of N/N. 20/2007, as amended - Effect of the notification which was quashed by the high court - irregular availment and utilization of credit of tax paid on clearance of waste and scrap - HELD THAT:- The Ld. Commissioner had rejected the Appellant’s application for fixation of special value addition rate and confirmed the demands, on the basis that the Appellant had foregone the option to seek special value addition and thus, they are only eligible for refund upto 56% of the value addition rate as mentioned in para 2A of the Notification No. 20/2007-CE (as amended). Hence, re-credit of duty in excess of 56% of value addition is liable to be recovered from them. The Appellant stated that in the said applications they have clearly indicated that they would have applied for fixation of special value addition rate, if the relevant Notification was in place at that point of time. Therefore, in terms of the Hon’ble Supreme Court order in UNION OF INDIA AND ANR. ETC. VERSUS M/S V.V.F. LTD. AND ANOTHER ETC. ETC. [2020 (4) TMI 885 - SC ORDER], which had an effect of reinstating the amended notification, the Appellant vide its letter dated 24.08.2020 requested for fixation of special value addition rate for the FYs 2010-11, 2011-12 and 2012-13 in terms of the workings submitted earlier. It is observed that the rejection of the Applications filed by the Appellant for Special rate fixation on the ground that they have foregone such option, is legally not tenable - the impugned order is liable to be set aside and the matter is remanded back to the Commissioner to decide the request for special rate fixation applications of the Appellant on merit - appeal allowed by way of remand.
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