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Central Excise - Tribunal - Case Laws
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- 2021 (5) TMI 907 - CESTAT CHANDIGARH
Interest is demanded on account of delayed payment of duty - supplementary invoice during the period 2009-10 for the period 2008-09 to 2010-11 - Penalty - Time Limitation - HELD THAT:- In this case, it is a fact of record that the appellant did not pay interest for the intervening period when they issued supplementary invoices for duty paid thereon. It is also a fact on record that thereafter an audit took place in January-February 2012 for the period 2008-10 and asked the appellant to make the payment of interest for the intervening period, but the appellant did not comply with the said direction. Thereafter, the Revenue was sleeping for more than 3 years and on the morning of 3rd September 2015, a show cause notice was issued to demand interest for the intervening period by invoking extended period of limitation. As it was in the knowle....... + More
- 2021 (5) TMI 906 - CESTAT NEW DELHI
CENVAT Credit - CENVAT Credit - Input service distribution (ISD) - input service is attributed to the goods on which excise duty is paid includes the cost of services on which credit was taken - Issuance of Input Service Distributors’ invoice by Parle to its contract manufacturing unit - contract manufacturing is carried out in terms of notification No. 36/2001-CE (NT) - HELD THAT:- The appellant accepted the authorization and agreed to discharge all liabilities under the Excise Act and Rules made thereunder in respect of the goods manufactured from time to time by the appellant on behalf of Parle. The terms and conditions also stipulate that the appellant would work as a job worker for manufacture of “Biscuits” for Parle and that Parle would arrange to send the raw materials and packing materials to the appellant on pay....... + More
- 2021 (5) TMI 903 - CESTAT CHANDIGARH
Grant of interest on delayed refund - relevant time for calculation of interest - annual production capacity under Compound Levy Scheme was fixed - HELD THAT:- The appellant filed the refund claim on 14.09.2005. The said application was kept pending by the Revenue and the same was not entertained. It was entertained only after the adjudication order on 31.10.2008 and the amount of refund was adjusted against the demand raised by order dt. 17.10.2008. Again, the litigation continued and finally this Tribunal hold that the said demand is not sustainable and remanded the matter back to the adjudicating authority for fresh adjudication. In terms of the decision of the Hon’ble Apex Court in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT], wherein the Apex Court has held that if the ....... + More
- 2021 (5) TMI 899 - CESTAT MUMBAI
EOU - Clearance of goods in DTA - manufacture and export of ‘Ceramic Colours/Pigments, falling under CETA 32071040 - It was alleged by the Department that the items cleared in DTA by the appellants were not similar to the goods exported and there was violation of the provisions of Para 6.8 of FTP - benefit of N/N. 23/2003-CE dated 31.03.2003 - Extended period of limitation - similarity of goods, exported by the appellant - HELD THAT:- Various judgments have given wider meaning to the word ’Similar’. It would mean similar, same class of or same kind of goods. In the instant case, the goods exported and the goods cleared are described as ceramic colours. In view of the ratio of the various judgements cited, there is not even an iota of doubt that the goods cleared by the appellant in DTA are nothing but the goods which are....... + More
- 2021 (5) TMI 870 - CESTAT ALLAHABAD
Quantum of interest on refund - grant of interest at 12% instead of 6% - time limitation for calculation of interest - appellant sought that the interest should be calculated from the date of deposit of the amount - HELD THAT:- In the present case, the provisions of section 11B of the Excise Act would not be applicable. This is for the reason that the appellant was not claiming refund of duty. The applicant, as noticed above, had claimed refund of the revenue deposit. Such a finding has also been clearly recorded by the Tribunal in the order dated 31.01.2017, which order has attained finality - There is no provision in the Excise Act, which deals with refund of revenue deposit and so rate of interest has not been prescribed, when revenue deposit is required to be refunded. In RIBA TEXTILES LTD VERSUS COMMISSIONER OF CE & ST, PANCHKULA....... + More
- 2021 (5) TMI 868 - CESTAT NEW DELHI
Refund of Excise duty paid under protest - method of valuation of physician samples - refund application filed by the appellant was rejected by placing reliance upon the Circular dated 25.04.2005 that prescribed for payment of duty under rule 4 of the Valuation Rules - appellant followed the practice of valuation of physician samples on cost of production + 10% profit and also enclosed therewith a list of products cleared on assessable value (cost+10%) - Section 11A of the Excise Act - HELD THAT:- In the present case, the appellant only deposited an amount of ₹ 43,57,437 /- under protest but specifically stated that it was not accepting the contention of the department that it was required to pay differential duty from 25.04.2005 to 30.09.2006. It cannot, therefore, be urged that the appellant had deposited any amount under sub-sect....... + More
- 2021 (5) TMI 852 - CESTAT MUMBAI
Levy of Interest - carry forward of excess credit - penalty - the amount was reversed on being pointed out - time limitation of paying interest - HELD THAT:- Admittedly there was mistake on the part of the Appellant in carrying forward in their Books of Accounts the closing balance of CENVAT credit for the month of August 2008, while switching from ERP to SAP system w.e.f 01/09/2008, in the opening balance for the month of Sep. 2008. When such mistake was pointed out by the audit team while scrutiny of their records in Sep. 2009, the Appellant immediately reversed the entire credit on 10/09/2009 accepting the lapse on their part but failed to pay applicable interest on the excess credit availed - In the present case, the Appellant reversed the credit in September 2009 but since failed to discharge the interest of the same, consequently, w....... + More
- 2021 (5) TMI 849 - CESTAT CHENNAI
CENVAT Credit - capital goods - capital goods were not received into the factory - Penalty - HELD THAT:- On perusal of the final order dated 20-5-2011, the Tribunal has directed officers to visit the assessee’s factory and satisfy themselves as to the availability of the Spectrometer in question. After such verification, it is seen noted in the de novo adjudication order that the capital goods were present in the factory. Thus the allegations raised in the Show Cause Notice that the capital goods were not received in the factory and that the credit availed is wrong is without any factual basis. Further, it can also be seen that the appellant had challenged before the Tribunal the allegation of wrong availment of credit and submitted only that they would not be seeking re-credit of the same for the reason that they had already surren....... + More
- 2021 (5) TMI 838 - CESTAT ALLAHABAD
CENVAT Credit - inputs - welding electrodes - denial on the ground that the welding electrodes used in the maintenance of plant and machinery cannot be called as inputs used in the manufacture of their final products - Penalty - HELD THAT:- A perusal of the SCN shows that the actual period in respect of the disputed CENVAT is April 2013 to March 2014. The period is significant since the definition of ‘input’ under CENVAT Credit Rules, 2004 was changed with effect from 1.3.2011 and this amended definition is relevant for the period of dispute. Penalty - HELD THAT:- There is no dispute that the welding electrodes were used in the factory of the manufacturer as they were used to maintain the machinery. Therefore, they are squarely covered by the definition of ‘input’ under Rule 2(k). Unlike the definition of input pri....... + More
- 2021 (5) TMI 676 - CESTAT KOLKATA
CENVAT Credit - input service - sales commission - HELD THAT:- The sales commission is directly attributable to sales of the products. Any activity which amounts to sale of the products is deemed to be sales promotion activity in the normal trade parlance - If there is no sale, there would not be any need to manufacture the products. Be that so as it may, to increase the manufacturing activity an encouragement is being given by way of sales commission for achieving increased sales. Hon’ble High Court of Punjab & Haryana in the case of COMMISSIONER OF CENTRAL EXCISE, LUDHIANA VERSUS AMBIKA OVERSEAS [2011 (7) TMI 980 - PUNJAB & HARYANA HIGH COURT], had clearly held that the sale and manufacture are directed inter-related and the commission paid on sales needs to be accounted for as services related to sales promotion. The impugned order cannot be sustained and is, therefore, set aside - Appeal allowed - decided in favor of appellant.
- 2021 (5) TMI 665 - CESTAT MUMBAI
100% EOU - DTA sales limit - concessional duties of Central excise - Allegation is that goods cleared in DTA, in excess of the permitted 90% of the FOB value of the exports, in contravention of Para 6.8[a] of the Foreign Trade Policy and condition  of the notification number 23/2003-CE dated 31-03-2003 - appellants have based their submissions mainly contending that the items manufactured, exported and cleared in DTA by them are similar; the department has misread the provisions of Policy in finding that DTA sales limit of 90% would apply to each product separately, whereas the word used is products. HELD THAT:- The appellants have based their submissions mainly contending that the items manufactured, exported and cleared in DTA by them are similar; the department has misread the provisions of Policy in finding that DTA sales limit of ....... + More
- 2021 (5) TMI 606 - CESTAT KOLKATA
CENVAT Credit - capital goods - lead and articles thereof, viz, lead ingot, lead dross and lead sheet classifiable under chapter 78 - period April 2005 to January 2010 - HELD THAT:- The goods in question have been used in the repair and maintenance which is not in dispute and the same has been duly recorded by the Ld. Commissioner in para 5.4 of the impugned order in page no. 14. After taking note of the diagram and photographs submitted by the appellant in the course of adjudication, the Ld. Commissioner has observed that goods in question have been used to channelize sulphuric acid in the manufacturing process. The process helps restore coating inside the steel channels forming part of the machines to keep the machine in running condition. In essence, the goods on which credit has been denied have been used in the factory for repair and....... + More
- 2021 (5) TMI 442 - CESTAT KOLKATA
CENVAT Credit - Inputs or not - by-product - wash oil, sulphuric acid, caustic soda, alum, hydrochloric acid, ion exchanger - generation of ammonium sulphate and CO gas - cenvat credit on common inputs which were used in or in relation to, either directly or indirectly in the manufacture and clearance of dutiable final products as well as exempted final products - ammonium sulphate and CO gas - Rule 6(3)(ii) of the Cenvat Credit Rules. Whether wash oil, sulphuric acid, caustic soda, alum, hydrochloric acid, ion exchanger are inputs in or in relation to generation of ammonium sulphate and CO gas? - HELD THAT:- In the case of AARTI DRUGS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI-III [2001 (4) TMI 146 - CEGAT, MUMBAI] which was affirmed by the Hon’ble Bombay High Court in COMMISSIONER VERSUS AARTI DRUGS LTD. [2009 (2) TMI 800 ....... + More
- 2021 (5) TMI 441 - CESTAT KOLKATA
CENVAT Credit - common inputs and input services attributable to exempted goods and goods having nil rate of duty - HELD THAT:- The issue involved in the present case is no longer res integra. The Hon’ble Telengana High Court, in M/S TIARA ADVERTISING VERSUS UNION OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE [2019 (10) TMI 27 - TELANGANA AND ANDHRA PRADESH HIGH COURT], has held that in the event the assessee is found to have availed Cenvat credit wrongly, Rule 14 of the Cenvat Credit Rules empowers the Authority to recover such credit which had been taken or utilized wrongly, along with interest and that the statutory scheme does not vest the Revenue authorities with the power of choice under, inter alia, Rule 6(3)(i) of the Cenvat Credit Rules. This decision has been followed by the Division Bench of this Tribunal in the case....... + More
- 2021 (5) TMI 415 - CESTAT KOLKATA
Clandestine removal - whether the demand is based on assumptions and presumptions without any positive evidence? - penalty - HELD THAT:- There are no observation to justify upholding the duty demand, as has been claimed to have made by the learned Commissioner. Since a detailed observation has been made in the impugned order to hold that the charge of clandestine manufacture and clearance is not supported by any positive evidence and is merely based on assumption and presumption, which has not been rebutted, there are no reason to uphold the duty demand. Appeal allowed - decided in favor of appellant.
- 2021 (5) TMI 383 - CESTAT CHANDIGARH
Grant of interest on delayed refund - appeal dismissed as being time barred - HELD THAT:- Considering the fact that the claim of interest was not whispered in the order dt. 11.04.2018 of the adjudicating authority, against which the appellant moved an application for payment of interest on 07.05.2019 and it was answered on 29.08.2019; therefore, the intimation/letter dated 29.08.2019 is an appealable order before the ld. Commissioner (Appeals). Against the said order, the appellant has filed an appeal before the ld. Commissioner (Appeals) on 31.10.2019 which is well within the time limit prescribed under the Act. The appeal filed by the appellant before the ld. Commissioner (Appeals) is in time. Therefore, the impugned order qua holding that the appeal is time barred is set aside - Matter remanded back to the ld. Commissioner (Appeals) to decide the issue on merit following judicial pronouncements on the issue - appeal allowed by way of remand.
- 2021 (5) TMI 316 - CESTAT AHMEDABAD
Determination of Annual Production capacity - reduced annual production capacity on the basis of reduction of parameters in their mills - Rule 5 of Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997 - HELD THAT:- On the plain reading of the Rule 5 of Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997, it is clear that even if the parameter is changed the APC should be fixed based on the annual production of the year 1996-1997. However, the vires of Rule 5 is pending before the Hon’ble Supreme Court in M/S. BHUWALKA STEEL INDUSTRIES LTD. & ANOTHER VERSUS UNION OF INDIA & OTHERS [2017 (3) TMI 1357 - SUPREME COURT]. Therefore, in the interest of justice, as regard the issue of determination of APC and demand of duty it should be decided only after the Hon’ble Supreme Court judgment. The....... + More
- 2021 (5) TMI 281 - CESTAT CHANDIGARH
Refund of CENVAT Credit - amount was paid under protest - denial of refund on the ground of time limitation - Applicability of time limit prescribed for one year - HELD THAT:- The said issue has been examined by this Tribunal in the case of HUTCHISOM MAX TELECOM PVT. LTD. VERSUS COMMISSIONER OF C. EX., MUMBAI [2004 (1) TMI 114 - CESTAT, NEW DELHI] where on identical issue, it was held that the refund of the duty paid by the Appellants cannot be denied to them on the ground of claim being time barred. Further in the case of M/S. TAMILNADU EX-SERVICEMEN’S CORPORATION LIMITED VERSUS COMMISSIONER OF G.S.T. AND CENTRAL EXCISE, CHENNAI [2019 (12) TMI 185 - CESTAT CHENNAI] it was held that even when Service Tax was paid under mistake of law, the period of limitation cannot be invoked to deny the refund. Thus, the contesting the reversal of....... + More
- 2021 (5) TMI 175 - CESTAT CHANDIGARH
CENVAT Credit - input services - Air Travel Agent Service /Rail Travel Agent Service - Real Estate Agent Service - denial on the ground that these services have no direct or indirect relation to the manufacturing activity of the appellant - HELD THAT:- The sample invoices were produced before the adjudicating authority and reason for denial of cenvat credit is that the services in question have no direct or indirect relation to the manufacturing activity of the appellant. It is not a case where the appellant has not provided the sample invoices of the services on which they have taken cenvat credit. In these circumstances, the services in question are having direct relation with the manufacturing activity of the appellant. CENVAT Credit allowed - appeal allowed - decided in favor of appellant.
- 2021 (5) TMI 28 - CESTAT CHANDIGARH
CENVAT Credit - denial on the premise as per Notification No. 02/14-CE (N.T) dt. 20.01.2014 - time limitation - HELD THAT:- There is no provision in law for the appellants to file invoices before the department in time. In these circumstances, As the assessee was allowed credit by the adjudicating authority although the Revenue has filed appeal against those orders before the Commissioner (Appeals). In these circumstances, when the adjudicating authorities are having a divergent view, it is found that the extended period of limitation is not invokable in the facts and circumstances of this case. Admittedly, in the case in hand, the show cause notices have been issued by invoking extended period of limitation, therefore, the denial of credit is barred by limitation. The demand against the appellants is barred by limitation - Appeal allowed - decided in favor of appellant.