TMI Blog2015 (5) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... that both are different. The appellant's stand is that both the products are interchangeable for end use and therefore, are to be treated as similar to each other. The Revenue has also taken a view that both the products are obtained from different origin; margarine is a butter derived from animal fats whereas the peanut butter is plant fat. - In any case, the entire exercise would have been revenue neutral but for the fact that in this case, there happened to be a higher rate of duty on the imported goods and the value addition is not sufficient and as a result, the amount of tax payable on the final product is less than the credit available. Even then it is seen that out of the credit taken, an amount of ₹ 83,01,243/- paid by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een confirmed in the impugned order and penalty of ₹ 1,40,49,365/- has been imposed under Rule 15 of the Cenvat Credit Rules 2004. The case of the department is that 'Peanut butter' and 'Margarine' are two distinct products and not similar to each other by virtue of classification in the Tariff / HSN Explanatory Notes and physical/chemical nature of the products or by virtue of their commercial use. 2. Heard both sides. Sl. No. 11 to Notification No. 03/2006-C.E. dated 1.3.2006 exempts 'all goods' falling under CTH 1517 9020 or 1518 (other than margarine and similar edible preparation).Chapter heading 1517 10 covers Margarine, excluding liquid margarine. Peanut butter is specifically covered Tariff 15179020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or which the applicants are in any case entitled for refund (under Notification No. 102/2007-Cus dated 10.9.2007) if the same is not available as credit. Reliance is placed on the following decisions : (i) C.C.E. vs. Narayana Polyplast [2003 (179) ELT 20 (SC)] (ii) CCE vs. Narmada Chematur Pharmaceuticals Ltd [2005 (179) ELT 176 (SC)] (iii) Bhushan Steel Ltd. vs. CCE, Ghaziabad [2014 (299) ELT 254 (Tri.-Del.)] (iv) CCE, Mumbai vs. Mahindra Mahindra Ltd. [2005 (171) ELT 159 (SC)] Second Issue: The appellants have accepted the demand to the extent of short receipt of inputs and have reversed the credit to the extent of ₹ 41,857/- along with interest. The remaining inputs have been damaged during the course of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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