TMI Blog2011 (7) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules - Appeal is dismissed - Tax Appeal No. 273 of 2005 - - - Dated:- 22-7-2011 - Akil Kureshi, Sonia Gokani, JJ. S.N. Thakkar for the Appellant Darshan M. Parikh for the Respondent JUDGEMENT Akil Kureshi: 1. Assessee has challenged judgment dated 09.03.2004 of Customs Excise and Service Tax Appellate Tribunal, Mumbai (for short 'CESTAT') in following factual background. 2. Assessee is manufacturing unmachined casting which are used for manufacture of diesel engine etc. Assessee has been clearing such goods upon payment of excise duty at the rate applicable from time to time. Somewhere in the year 2000, assessee had an occasion to sell such product to one M/s. Shakti Pumps Ltd. situated at P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of power driven pump sets. In our opinion, the casting and cast article of Iron and steel are not exempt from payment of duty for manufacturing of power driven pump set under the said Notification. However, at the time of clearance we will be debiting the amount at the rate of 8% under Rule 57-D of Central Excise Rules, 1944, but we will be debiting the under protest only. We would also like to clarify that since the department has issued the CT-2 certificate, we will be clearing the said product without payment of duty by following the procedure prescribed." 4. On the basis of such stand in the communication dated 28.03.2000, assessee approached Department seeking refund of modvat credit reversed at the rate of 8% of the duty pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carry the condition of compliance of Chapter-X procedure, for imposing payment of 8% under Rule 57CC of Central Excise Rules, 1944?" 10. Before us, learned Counsel for the assessee vehemently contended that procedure under Rule 57-CC of the Central Excise Rules was not required to be followed as goods sold by the assessee were not used for manufacturing of product which is either exempted from duty of excise liable nor did it carry nil rate of duty. It was contended that Chapter X of the Central Excise Rules pertains to remission of duty on goods used for special industrial purposes and thus provided for entirely different category. In this regard, reliance is placed upon following decisions:- (1) Commissioner of Central Excise, Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argeable to nil rate of duty] and the manufacture takes credit of the specified duty on any input (other than inputs used as fuel) which is used or ordinarily used in or in relation to the manufacture of both the aforesaid categories of final products whether directly or indirectly and whether contained in the said final products or not, the manufacturer shall, unless the provision of sub-rule(9) are complied with pay an amount equal to eight percent of the price (excluding sales tax and other taxes, if any payable on such goods) of the second category of final products charged by the manufacturer for the sale of such goods at the time of their clearance from the factory. 14. Short question therefore, that calls for our consideration is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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