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2016 (8) TMI 383 - CESTAT BANGALORE

2016 (8) TMI 383 - CESTAT BANGALORE - TMI - Reversal of Cenvat credit - Contravention of Rule 6(1) & 6(2) of CENVAT Credit Rules 2004 - clearance of upholstery furniture to SEZ developer after availing credit on inputs and without payment of duty, in the nature of export - non-maintainance of separate accounts of receipt, consumption and inventory of inputs - Held that:- in the light of the decisions by the Tribunal and the Hon’ble High Court of A.P in the case of Sujana Metal Products Ltd [2015 .....

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f inputs used in the manufacture of goods supplied to SEZ developer is required under law. - Decided in favour of appellant - E/1004/2011-SM - Final Order No. 20607/ 2016 - Dated:- 3-8-2016 - Shri S. S. Garg, Judicial Member For the Appellant : Mr Sathya Vageswaran V, Adv For the Respondent : Mr Parashiva Murthy, A.R ORDER Per S. S. Garg The present appeal is directed against the order of the Commissioner (Appeals) vide which he has upheld the order-in-original while rejecting the appeal of the .....

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A of the Central Excise Act read with Rule 14 of the CENVAT Credit Rules 2004 and proposed to impose penalty under Rule 15(1) of the CENVAT Credit Rules 2004 mainly on the allegation of contravention of Rule 6(1) of the CENVAT Credit Rules 2004 for availing credit on the inputs used in the manufacture of final goods cleared without payment of duty to SEZ developer and also for contravention of Rule 6(2) of CENVAT Credit Rules 2004 due to not maintaining of separate accounts of receipt, consumpti .....

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being removed under Rule 19 of the Central Excise Rules under ARE-1, the same were in the nature of export and as per SEZ law and the Central Excise law, and as per the provisions of Rule 6(6)(1) of CENVAT Credit Rules 2004 input credit on such clearances are allowed and requested to drop the duty and interest. The original authority vide order dated 08.09.2009 confirmed the duty demand along with interest and imposed penalty of ₹ 2,00,000/- under Rule 15(1) of the CENVAT Credit Rules. Bei .....

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said decision of the Tribunal was challenged by the department before the Hon ble High Court of Andhra Pradesh and the Hon ble High Court vide order dated 02.07.2013 in Central Excise Appeal No. 40/2012 dismissed the appeals filed by the department. He also submitted that the Hon ble Chhattisgarh High Court in the case of UOI Vs Steel Authority of India Ltd [2013(297)ELT 166] considered an identical issue and held that the amendment to Rule 6(6) to include SEZ developer with effect from 31.12.2 .....

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) included supply of goods to a Unit or Developer , in clause (i) of sub-rule(6) of Rule 6 of the Cenvat Credit Rule, 2004, the word Developer was conspicuously missing and only unit was included before the 2008 amendment. It is in that context the aforesaid amendment by Notification No. 50/2008 CE (NT) dated 31.12.2008 was brought in, to clarify the doubt. As the said amendment is clarificatory in nature, that is the reason why it was brought by way of substitution . The effect of the said subs .....

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