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2023 (3) TMI 1365 - AT - Central ExciseCENVAT Credit - duty paid on the inputs namely craft paper and paper boards purchased from the principal manufacturers - allegation of the department is that the principal manufacturers / suppliers ought to have availed full exemption as per Exemption Notification No.4/2006-CE and should not have cleared the goods under Sl.No.91 paying concessional duty @ 4% - HELD THAT:- The very same issue was decided by the Tribunal in the case of M/S. AKSHERA PAPERS VERSUS THE COMMISSIONER OF CENTRAL EXCISE, SALEM (VICE-VERSA) [2018 (9) TMI 1652 - CESTAT CHENNAI] wherein the Tribunal observed that The issue decided in the case of M/S. SRIPATHI PAPER & BOARDS VERSUS CCE & ST, TIRUNELVELI [2018 (9) TMI 891 - CESTAT CHENNAI], where it was held that the assesse has to necessarily pay an amount equivalent to the credit availed on inputs, inputs in the process of manufacture and inputs in the final products lying in stock either by deducting the amount from the balance available in their books of accounts and, if there is no sufficient balance, then, by way of cash payment. With regard to the balance credit available in the appellant’s books after such reversing as on 31.03.2010, if any, is lapsed. In the case of M/S. KOVAI MARUTHI PAPER AND BOARDS, M/S. SARASWATHI UDYOG INDIA LTD, SHRI RAM CARTONS, M/S. SRIVARI PACKAGING INDUSTRIES VERSUS CCE, SALEM AND CCE, SALEM VERSUS M/S. SARASWATHI UDYOG INDIA LTD., M/S. KOVAI MARUTHI PAPER AND BOARDS [2018 (5) TMI 474 - CESTAT CHENNAI], the Tribunal had examined whether the principal manufacturers should compulsorily avail exemption at Sl.No.90 which specifies ‘Nil’ rate of duty. The Tribunal followed the decision in the case of Balakrishna Paper Mills and Others – 2015-TIOL-1100 and held that it is not mandatory to avail Sl.No.90 which extends ‘Nil’ rate of duty and that the assessee has the option to pay duty at concessional rate of 4%. The the demand cannot sustain - appeal allowed.
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