9911796707
TMI Blog2007 (5) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Lakh Sixty-Nine Thousand Seven Hundred Fifty- Seven Only). As this was the first time that the assessee had shown production of DP Resin, an investigation was conducted to ascertain whether the assesse had the facility for manufacture of the product at the Raigad factory, and it was revealed that no manufacture took place at Raigad and that the export product was brought from their Jammu unit and since no manufacture took place at Raigad, Cenvat credit availed by the assessee was irregular and required to be recovered, and the claim for rebate was also held to be inadmissible. Show cause notice was therefore issued to the assessee on 3rd May 2006 proposing recovery of Cenvat credit of Rs. 70,08,387/- together with interest at the appropr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee; and further, samples of the input and of the finished products were drawn on 6-2-06 and no test report was produced to show that the inputs on testing were found to be DP Resin, and not DP Rosin. The finished export product was found to be DP' Resin, on test by Customs authorities. The statements re corded by the excise authorities also establish that the assessee had the infra structure to manufacture DP Resin and had undertaken the manufacture thereof, out of the DP' Rosin received from Jammu unit. In his statement dated 6-2-2006 and 7-3-2006 Shri Subhash Sen. the President (Operations) of the assessee has clearly stated that the assessee undertook manufacture of DP' Resin at Raigad, using DP' Rosin received from Jammu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt that the reactors in the Camphor plant cannot be used for manufacture of Resin cannot be relied upon to hold that no manufacture of DP Resin took place in Raigad. 4. The finding of the Commissioner that manufacture of DP Resin out of D.P. Rosin is not feasible either technically or commercially for the reason that Resin is obtained naturally from various trees containing non-volatile as well as volatile turpentine and the components of volatile terpenes can be separated by fractional distillation so that the required resin can be made more viscous and sticky, as the resin remains as resin, and therefore there was no need to convert natural resin into DP Rosin and then again into resin (DP Resin) is contrar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dated 14-2-06, that export drums were made out of sheets lying with them. Further, bills for such sheets were paid for by cheques of November 2005 and January 2006 and therefore the plea cannot be discarded as an after thought. The finding that there were no is sue slips of Turpentine from 3-12-05 to 21-12-05 and hence no DP Resin could have been manufactured at Raigad (Turpentine is an essential raw material for the DP Resin) is not tenable as the assessee had shown that they already had turpentine available in the day tank of 50000 litres capacity and this was sufficient for the purpose of manufacture of DP Resin and further, issue slips enclosed with the show cause notice clearly show that Turpentine was issued on 16-12-2005, 17- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir factory, under the provisions of Notifications Nos. 56-57/2002-C.E., in the light of the clarification dated 28-6-2005 of the Chief Commissioner of Central Excise based on which rebate has been granted to other merchant manufacturers such as Solar Trade Links and also to the present assessee. Since the goods are treated as duty paid for the purpose of availing Cenvat credit, they cannot be treated as other than duty paid for the purpose of grant of rebate in terms of Rule 18 of the Central Excise Rules. Our view is fortified by CBEC clarification dated 3-3-2006 that there is no bar in law to grant of rebate to the merchant-exporter even where the duty paid by the manufacturer has been refunded under Notification Nos. 56-57/02, and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
