Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 232 - AT - Central ExciseBenefit of N/N. 03/2006-CE dated 01.03.2006 (Sr.No. 28) - instant foods mixes - Gota Mix, Khaman Mix, Dalwada Mix, Dhosa Mix, Gulab Jamun Instant Mix etc. - Reversal of CENVAT credit - packing materials - inputs contained in the final products lying in stock or in process - Held that:- The issue is no longer res integra and has been settled by this Tribunal in the case of COMMISSIONER OF C. EX., AHMEDABAD VERSUS RM FOODS [2009 (8) TMI 463 - CESTAT, AHMEDABAD], where it was held that Admittedly, the notification exempts instant food mixes. The products manufactured by the respondent are nothing but instant food mixes. After exempting instant food mixes, the notification goes to further elaborate the same by giving exemptions to such mixes when it used expression ‘such as’ - the appellants are eligible to the benefit of N/N. 03/2006-CE dated 01.03.2006. Reversal of CENVAT credit lying in balance in respect of packing materials - Held that:- The final products manufactured by the appellants were exempted vide N/N. 03/2007-CE dated 01.03.2007. The sub-rule (3) inserted in Rule 11 of CCR, 2004 by virtue of N/N. 10/2007-CE (N.T.) dated 01.03.2007 - On a plain reading of the said sub-rule, it is found that the appellant are required to reverse an amount of ₹ 1,64,185/- equivalent to CENVAT credit taken on packing materials, used in packing of semi-finished goods and material used in packing of finished products on, availing the exemption N/N. 03/2007-CE dated 01.03.2007 when the amendment in Rule 11 (3) came into effect from 01.03.2007. Penalty - Held that:- Since the SCN was issued for the normal period of limitation i.e. on 03.04.2007 and the issue relates to interpretation of law besides the appellant reversed the credit on 16.03.2007, that is, before issuance of SCN, therefore, imposition of penalty on the appellant is unwarranted and accordingly set-aside. Appeal allowed in part.
|