9911796707
TMI Blog2019 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... t. A part of cement manufactured was cleared with duty exemption for earthquake under Notification No. 02/2001-CE dated 27.01.2001 and Notification No. 16/2001-CE dated 26.03.2001. The department issued show cause notice dated 03.04.2002 for the period March 2001 to May 2001 demanding duty of Rs. 2,05,200/- on the part the clinker used in the portion of cement which was cleared with duty exemption for earthquake relief. Prior to 27.05.2002, the appellant was reversing 8% value of exempted cement cleared for earthquake relief and from 27.05.2002 onwards, instead of reversing 8%, the appellant started maintaining separate accounts in respect of the inputs on which Cenvat credit was not taken namely, HDPE Bags. However, separate accounts for f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -CE. In his support, ld. Counsel relied upon the judgment of this Tribunal in the case of Toyto Kirloskar Motor Limited vs. CCE - 2009 (237) ELT 176 (Tri. Bang.) and Rajshree Cement vs. CCE - 2003 (160) ELT 438 (Tri. Bang.). He submits that even though Notification No. 67/95-CE is not available, the clinker otherwise exempted under Notification No. 02/2001-CE itself. Without prejudice he submits that since the appellant was paying/ reversing 8% value of exempted cement, the appellant was entitled for the exemption under Notification No. 67/95-CE as held in Toyto Kirloskar Motor Limited (supra) and in Bhushan Steel & Strips Limited vs. CCE - 2015 (326) ELT 729 (Tri. Del.). As regards the Notification No. 16/2001-CE, he submits that in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 2/2001-CE and 16/2001-CE. We find that Notification No. 2/2001-CE reads as under :- "Donations for relief and rehabilitation of the people affected by the Earthquake in the State of Gujarat - Exemption from excise duty In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling under the First and Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) donated or purchased out of cash donations, for the relief and rehabilitation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed but though the cement supplied contains the clinker and therefore, it is clear that clinker is deemed to have been supplied for earthquake relief. Therefore, the appellant are entitled for the exemption under Notification No. 2/2001-CE. In such case, even if appellant is not entitled for Notification No. 67/95-CE the exemption otherwise is available under Notification No. 2/2001-CE. For the subsequent period, as regards the claim of the appellant for Notification No. 16/2001-CE, we find that only lapse is that the appellant have availed and retained Cenvat credit on fuel. Though the appellant have discharged obligation prescribed under Rule 6 (2) of Cenvat Credit Rules, 2004 but by availing Cenvat credit on fuel, the obligation under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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