TMI Blog2011 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... Negi, SDR for the Revenue. Per: M.V. Ravindran: This appeal is directed against the Order-in-Appeal No.COMMR(A)/309/VDR-II/2009, dt.31.12.09. 2. The relevant facts that arise for consideration are that the appellant herein is a manufacturer of transformers and are availing CENVAT Credit on duty paid of inputs used in the manufacturing of finished products. During the relevant period from May 2007 to November 2007, the appellants cleared various transformers i.e. finished goods by availing benefit of exemption from payment of duty in terms of Notification No.34/2006-CE, dt.14.06.06, as amended by Notification No.41/2006-CE, dt.13.10.06. The said notification grants exemption to the excisable goods from the whole of duty subject to the condition that the buyer has to produce duty free certificate issued under 'Served From India Scheme' (SFIS) as per Para 3.6.4 of Foreign Trade Policy 2006-2007. The appellants cleared the finished goods by debiting the duty amount from the certificate produced by the buyers. The lower authorities were of the view that the appellants have used Cenvatable input in the manufacture of goods cleared under exemption and having not maintained pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved from India Scheme - Exemption to goods supplied to service provider In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts goods, namely. - (i) in the case of hotel or stand alone restaurant, office equipment, professional equipment, office furniture and consumables, related to its service sector business and food items and alcoholic beverages but excluding other products classifiable in Chapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (ii) in the case of service provider other than hotel or stand alone restaurant, capital goods including spares, office equipment, professional equipment, office furniture and consumables, related to its service sector business, when cleared against a Served from India Scheme Certificate, (her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustry, vide No. 1/2004, dated the 31st August, 2004, as amended from time to time; (iii) 'Regional Authorityi' means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a certificate under the said Act. [Notification No. 34/2006-C.E., dated 14-6-2006] 7.1 It can be seen from the above that the exemption which has been granted under the notification was subjected to specific conditions. It can be seen from condition No. (i) that the exemption to the goods cleared from the factory premises of an assessee will be granted only if the SFIS certificate is produced before the authorities i.e. Central Excise Officer at the time of clearance and for 'debit of the duties leviable on the goods, but for this exemption.' This would clearly indicate that the conditions in the SFIS certificate are nothing but discharge of the duty which has to be paid by the appellant to the Government of India. This would almost equal to the debits which are being made in the letter of undertaking furnished by an assessee for clearing the goods for export without payment of duty, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms before clearance of any further consignment either by way of import or domestic procurement. The jurisdictional Central Excise officer shall also intimate in writing the details of debit made to the Customs authorities at the Port of Registration. (iv) It shall be the responsibility of the scrip holder to ensure that he gives proper intimation of debit by Excise to the Customs authorities at the Port of Registration before further clearances. (v) The Customs authorities at the port of registration shall permit duty debit on imports after verifying the details of debit, if any done by Central Excise authorities." 8.1 It can be seen from the above reproduced clarification that the CBEC specifically mentioned the conditions that has to be performed by the jurisdictional Central Excise Officer of the assessees from where goods are cleared under SFIS. The CBEC circular also very specifically clarifies that the original certificate has to be produced before the jurisdictional Central Excise Officer for 'debiting the duties of excise leviable on the goods'. The wordings of notification and subsequent CBEC Circular, would make it clear that the duty liability which has been debite ..... X X X X Extracts X X X X X X X X Extracts X X X X
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