Tax Management India. Com
                            Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals SMS News Articles Highlights
        Home        
 
Extracts
Home List
← Previous Next →

Tamilnadu Paints And Allied Products Ltd. Versus Commissioner of Central Excise, Chennai

2017 (12) TMI 643 - CESTAT CHENNAI

Benefit of SSI Exemption - Classification of goods - Road Marking Paints - classified under CETA 3210.90 or under CETA 3208.90? - case of appellant is that they are eligible for SSI exemption as prevalent during the impugned period, in which case they claim that there shall be no duty liability since all their clearances will be within the exempted turn over limits - Held that: - appellants have accepted the CETA classification of 3208.90 in respect of Road Marking Paints manufactured by them as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rovision for demand of interest was introduced for the first time by insertion of Section 11AA only w.e.f. 26.5.1995 by Section 73 of the Finance Act, 1995. Subsequent insertion of Section11AB was made w.e.f. 28.9.1996 by Section 76 of the Finance Act, 1996, which too was amended w.e.f. 11.5.2001. Even so, statutory provisions for demand of interest on duty not paid, short paid etc. cannot have retrospective effect. - The SCNs based on which the above differential duty has been demanded have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dhar, Member ( Technical ) Shri P. C. Anand, Consultant For the Appellant Smt. S. Hemavathi, Commissioner (AR) For the Respondent ORDER Per: Madhu Mohan Damodhar The facts of the case are that appellant, a Govt. of India Undertaking and a SSI unit, are manufacturers of Primer, Bituminous paints and Anti-corrosive black paints. Appellant also manufactured Road Marking Paints which they classified under 3210.90. The department disputed the classification and instead proposed classification under C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2,21,932/- and appropriated a sum of ₹ 1,00,540/- already paid by the appellant. Original authority also demanded interest under Section 11AB of the Central Excise Act, 1944. On appeal, Commissioner (Appeals) vide impugned order dt. 26.3.2010 upheld the order of original authority. Hence this appeal. 2. On 03.11.2017, when the matter came up for hearing, on behalf of appellant, Ld. Consultant Shri P.C. Anand made oral submissions as under : (i) As per the duty exemption for SSI units in fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ill not be any duty liability. (iv) The provisions requiring payment of interest on delayed payment of duty were not incorporated in the Central Excise Act during the disputed period and Section 11AA of the Central Excise Act came into effect only w.e.f. 26.5.1995 and Section 11AB came into effect only from 28.9.1996. In fact, none of show cause notices had demanded interest liability on the differential duty. (v) Out of the disputed amount of ₹ 2,21,931/- more than 45% of the demand namel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n by availing modvat credit and had paid duty accordingly to the extent of ₹ 11,993.60. This being so, the appellant themselves have opted to avail modvat credit and pay lower rate of duty. In such circumstances, they will not be eligible for turnover-based Nil duty exemption. 4. Heard both sides and have gone through the facts. From the facts at hand, it is clear that the appellants have accepted the CETA classification of 3208.90 in respect of Road Marking Paints manufactured by them as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n No.175/86 dt. 1.3.1986, found reproduced in para 28 of the adjudication order dt. 31.12.2007, that in the case of first clearances upto ₹ 20 / ₹ 30 lakhs of specified goods where modvat is not availed, the whole of the duty of excise leviable thereon is exempted. However, in case, the manufacturer avails credit of duty paid on the inputs, the rate of duty will be equal to normal duty less10% advalorem, subject to a minimum duty of 5%. Thus, as per the said SSI notification, the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

have to discharge duty liability at "effective rate of duty less 10%" from the beginning. This being so, the contention of the appellant that they are eligible for availing turn over based SSI exemption does not succeed. We also find that the SCNs have worked out the differential duty liability after deducting 10% from effective rate of duty for CETA 3208.90. In the circumstances, we hold that the total differential duty liability of ₹ 2,21,932/- confirmed in the adjudication ord .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ime by insertion of Section 11AA only w.e.f. 26.5.1995 by Section 73 of the Finance Act, 1995. Subsequent insertion of Section11AB was made w.e.f. 28.9.1996 by Section 76 of the Finance Act, 1996, which too was amended w.e.f. 11.5.2001. Even so, statutory provisions for demand of interest on duty not paid, short paid etc. cannot have retrospective effect. This is the law as interpreted by the Tribunal in M.P Tapes Vs CCE Coimbatore (Order No.1375/97 dt. 22-04-97) which held that Section1 1AB pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se Act, 1944 I am directed to say that doubts have been raised as to whether provisions of Section 11AB of the Central Excise Act, 1944, will apply to past clearances or not. 2. The Board had clarified vide F. No. 354/118/96-TRU, dt. 6-1-97 (Para 3) that it would apply even to past cases where duty u/s. 11A(2) is determined on or after 28-9-96. 3. Further, on the matter being referred to the Solicitor General of India (SG), in his detailed opinion dt. 3-1-2000, he had opined that Section 11AB wo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d would apply only to those case where clearances were affected after 28-9-96. The Reference application filed by the Commissioner before the CEGAT was dismissed by the CEGAT on 28-5-1998 [reported in 1998 (103) E.L.T. 128 (Trib.)]. The Reference Application before the Madras High Court (RCP No. 1/99) was dismissed on 12-5-2000. The Deptt. s SLP (CC 7698/2000) against the High Court order was dismissed by the Apex Court on 27-11-2000. 5. The matter has been examined in the Board. It is seen that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

judications are done on and from 28-9-96, irrespective of the fact whether it relates to clearances of an earlier period. The Apex Court has, however, confirmed a contrary view in the case of M/s. M.P. Tapes. 6. Section 11AB(2) [as well as section 11AB(1)] has been substituted w.e.f. 11-5-2001 by the Finance Act, 2001, making it now very clear that Section 11AB will apply only to cases where duty had become payable or ought to have been paid after 11-5-2001. Further, proviso to section 11AB(1), .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.