TMI Blog2017 (3) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 - denial on the ground that additional production of writing & printing paper was a result of the expanded capacity and not establishment of a new unit - Held that: - the assessee namely M/s Century Pulp and Paper has fulfilled the condition laid down in the N/N. 50/2003-CE dated 10.06.2003 and is eligible for exemption from payment of duty - appeal of department dismissed. Appeal allowed - decided in favor of assessee. - E/204/2010, 393/2010 EX[DB], E/470/2012 EX [DB] - Final Order No. _50862-50864 /2017 - Dated:- 15-2-2017 - Mr. Dr. Satish Chandra, President and Mr. Ashok K. Arya, Member (Technical) Sh. Yogesh Agarwal, Ld. AR for the appellant Sh. V. Lakshmi Kumaran, Ld. Advocate for the respondent ORDER 1. The appellant namely, Century Pulp and Paper has filed the appeal No . E/204/2010 against Order-in-Original no. 29-30/2009 dated 23.10.2009 passed by Commissioner Central Excise and Customs, Meerut II. 1.1 Against the same Order-in-Original no. 29-30/2009 dated 23.10.2009, Revenue has also filed cross appeal No. E/393/2010. 1.2 The impugned Order-in-Original dated 23.10.2009 dropped inter alia the proceedings initiated by the Show Cause No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng paper was a result of the expanded capacity and not establishment of a new unit. Therefore, no reliance can be placed by the C. Excise Department on the Assessee‟s correspondence with the Trade Tax Department. 4. The Revenue is respondent in the Appeal No. E/204/2010 and is the appellant in Appeal No. E/393/2010. The Revenue mainly submits that the appellant assessee is not entitled to the benefit of the Notification No. 50/2003-CE dated 10.06.2003 as the appellant started the new unit from ground zero, which cannot be covered by condition of Notification, which is - substantial expansion by way of increase in installed capacity of not less than 25%. 5. After careful consideration of the facts on record and the submissions of both the sides, it appears that the Revenue‟s submissions do not have sufficient force. The assessee unit is claiming that there is expansion of 62% in the installed capacity though Notification mentions only 25% expansion-in-capacity as the eligibility to claim the benefit. This expansion is termed as establishing or starting a new unit‟ by the Revenue, though the manufacturing plant expanding the capacity is located on the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Show Cause Notice dated 20.02.2008. It was alleged in the SCN that the Assessee was liable to reverse Cenvat credit of ₹ 98,00,432/-, which was contained in Inputs lying in the stock, Semi-finished goods (work in progress material) and finished goods lying in the stock on the opening day of 3.2.2007, which was not available to the assessee since they started availing exemption from payment of duty w.e.f. 3.2.2007 under notification no. 50/2003-CE dated 10.6.2003. 6.1 The Ld. Advocate for the appellant assessee further inter alia submits as under: i. Prior to opting for the exemption, final products manufactured by the Assessee were dutiable and the same were cleared on payment of duty. The Assessee availed Cenvat credit before opting for the said exemption under Notification no. 50/2003-CE, when it was manufacturing and clearing dutiable final products. ii. It is submitted that since the impugned credit was correctly availed at the time of receipt of inputs for manufacturing dutiable final products, the question of denial of credit would not arise merely due to such final products becoming exempt. iii. The above proposition of law is no longer Res Integr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized, has to be paid for. We are here really concerned with credit that has been validly taken, and its benefit is available to the manufacturer without any limitation in time or otherwise unless the manufacturer itself chooses not to use the raw material in its excisable product. The credit is, therefore, indefeasible. It should also be noted that there is no co-relation of the raw material and the final product; that is to say, it is not as if credit can be taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available. 14. 15. . . 21. In the light of the aforesaid, we are of the opinion that CENVAT credit which was validly availed at the time of the receipt of the inputs for the manufacture of the final product, on which excise duty was payable, but subsequently utilized for the manufacture of the same final product which became exempted from payment of excise duty pursuant to a subsequent notification, was not liable to be reversed under Rule 6(1) of the Cenvat Credit Rules, 2002. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above discussions and the case laws quoted above the appeal no. E/204/2010 filed by the assessee namely Century Pulp and Paper is allowed and the appeal no. E/393/2010 filed by the Revenue is dismissed. 11. Appeal No. E/470/2010: There is one more appeal no. E/470/2010 filed by the Revenue against Order-in-Appeal No. 519 dated 20.01.2011 whereunder the Order-in-Original dated 26.11.2009 passed by Assistant Commissioner, Central Excise, Haldwari finalzing the provisional assessment of M/s Century Pulp and Paper at nil rate of duty has been upheld. Considering the discussions and the decision arrived at for the Appeals nos. E/393/2010 and E/204/2010, there is no merit in this appeal filed by the Revenue as the assessee namely M/s Century Pulp and Paper has fulfilled the condition laid down in the Notification no. 50/2003-CE dated 10.06.2003 and is eligible for exemption from payment of duty; and it is hereby dismissed. 12. In the result, both the appeals filed by the department are dismissed and the appeal filed by the assessee-appellant is allowed by setting aside the impugned order. [Pronounced in open Court on __15.02.2017] - - TaxTMI - TMITax - Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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