9911796707
TMI Blog2015 (11) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and, therefore, they cannot pay duty on the initial clearance of 3500 MT of craft paper. The case was adjudicated by the Commissioner who vide the impugned order passed the following order. "i. I order debit of the Cenvat credit of the Central Excise duty involved on the inputs lying in stock as such, in semi-finished goods and in finished goods as on 01/03/2008 amounting o Rs. 4,41,825/- (Basic), Rs. 8,836/- (P.Ed. Cess), and Rs. 4,419/- (SHE Cess), totaling to Rs. 4,55,080/- from the assessees Cenvat account balance of Rs. 9,22,342/- (Basic), Rs. 17,709/- P.Ed. Cess), Rs. Nil (SHE Cess) totaling to Rs. 9,40,051/- and balance amount of Rs. 4,80,517/- (Basic) Rs. 8,873/- (P.Ed. Cess), and Rs. 4,419/- (SHE Cess) totaling to Rs. 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty, P.Ed. Cess, SHE Cess raised in terms of Section 11D of the Central Excise Act, 1944. v. I order for the recovery of the interest at appropriate rate on the amounts mentioned at Sr. No. ii to iii under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. vi. I impose a penalty of Rs. 1,31,011/- (Rupees one lakh thirty one thousand eleven only) for demand confirmed at Sr. No. ii above and a penalty of Rs. 6,92,803/- (Rupees six lakh ninety two thousand eight hundred three only) for demand confirmed at Sr. No. iii above respectively, totally amounting to Rs. 8,23,814/- (Rupees eight lakhs twenty three thousand eight hundred and three only), under Rule 15(1) of Cenvat Credit Rules, 2004." Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tonnes. The exemption shall not be applicable to a manufacturer of the said goods who avails of the exemption under the notification of the Government of India in the Ministry of Finance and Company Affairs (Department of Revenue) No. 8/2003-Central Excise, dated the 1st March, 2003. Explanation.- For removal of doubts, it is hereby clarified that the first clearances of an aggregate quantity not exceeding 3500 metric tonnes shall not include clearances of any paper and paperboard or articles made therefrom which attract nil rate of duty or are exempt from the whole of excise duty under any other notification. The exemption shall not be applicable if the factory in which the said goods are manufactured has a plant attached thereto fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A(1A) will come into play. The relevant portion of Section 5A is reproduced below:- SECTION 5A - Power to grant exemption from duty of excise. (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable thereon: (1A) For the removal of doubts, it is hereby declared that where an exemption under sub-section (1) in respect of any excisable goods from the whole of the duty of excise leviable thereon ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot less than 75% by weight of pulp made from materials other than bamboo, hard woods, soft woods, reeds (other than sarkanda) or rags. 7. In the result, we hold that the appellant-assessees cannot be forced to pay duty as per serial No.90 of Notification 4/2006 and they have option to pay the duty under other numbers, viz. 91 and 93. Since we have taken the view that the appellant cannot be forced to pay the duty under nil rate vide serial No.90, the other aspects raised in all the show cause notices as also the Revenue's appeal fall flat." 5. We find that the facts of the present case are squarely covered by the above mentioned decision of the Tribunal. Since we are holding on merits in favour of the appellant-assessee, there is no ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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