Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 727 - AT - Central ExciseRealization of 8%/10% amounts to receipt of Excise Duty - Requirement to remit the same to the Department - clearance of both dutiable and exempted goods from their factory premises - non-maintenance of separate records for inputs - HELD THAT:- The issue is no more res integra. The Larger Bench of the Tribunal in the case of UNISON METALS LTD. VERSUS COMMISSIONER OF C. EX., AHMEDABAD-I [2006 (10) TMI 171 - CESTAT, NEW DELHI] has held The scheme of the law is that manufacturers shall not collect amounts falsely representing them as central excise duty and retain them, thus, unjustly, benefiting themselves. In the present cases, (irrespective of whether the 8% payments were duty or not) since the 8% amount remain already paid to the revenue, and no amount is retained by the assessee, Section 11D has no application. After the Larger Bench’s decision, the Board has issued Circular No.870/8/2008-CX dated 16.05.2008, wherein it has been clarified that the CENVAT credit of the said amount of 8% or 10% cannot be taken by the buyer since such payment is not a payment of duty in terms of rule 3(1) of the CENVAT Credit Rules, 2004. Therefore, the said 10% amount should be shown in the invoice as “10% amount paid under Rule 6 of the CENVAT Credit Rules, 2004”. The impugned order is set aside - appeal allowed.
|