TMI Blog2014 (3) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted - No demand - decided against the revenue. - C.E.A. No.3 of 2005 - - - Dated:- 12-3-2014 - SRI G.CHANDRAIAH AND SRI CHALLA KODANDA RAM, JJ Shri V. Gopalakrishna Ghokhaley, Counsel, For the Appellant. M/s. Lakshmi Kumaran Sridharan, Counsel, for the Respondent JUDGMENT: (PER THE HON BLE SRI GC, J) This Central Excise Appeal is filed raising the two questions of law, which are set out below. (a) Whether the Customs, Excise, Service Tax Appellate Tribunal, South Zonal Bench at Bangalore was right in dismissing the appeal filed by the department by holding that the respondent had the option of reversing the entire credit on the disputed inputs and that the question of demanding 8% of the price o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final exempted product stand deleted in the account of the assessee, it cannot be said that the assessee has taken credit for the duty paid on the inputs utilised in the manufacture of the final product, which is exempted under Rule 57-A. In that view of the matter, the Tribunal had dismissed the appeal filed by the Department. Further, the first appellant, Commissioner Appeals, referred to the circular No.591/28/2001-Cx, dated 16.10.2001, which reads as under. The matter has been examined in the Board. It is stated that the basic principles underlying the Cenvat Scheme is that credit is admissible if duty is paid on final products. Attention is drawn to Sub-Rule (1) of Rule 6 of the Cenvat Credit Rules, 2001, which clearly provides t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Department of Atomic Energy under Notifications No.64/95 CE, 10/97 CE, at nil rate of duty and the question of demanding an amount of ₹ 4,21,193/- under Section 11A and interest there under Section 11AB does not arise. Accordingly, I pass the following order. ORDER I set aside the order passed by the Assistant Commissioner and allow the appeal filed by M/s. SPM Instrument India Pvt. Ltd. with consequential relief. There is no contra opinion or judgment, which has been brought to our notice to take a contra view. In that view of the matter, we see no reason to interfere with the order of the Tribunal. Accordingly, the appeal is dismissed answering both the questions in affirmative in favour of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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