9911796707
TMI Blog2008 (4) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... . M/s Reliance Industries have cleared the goods to the appellants on payment of basic excise duty and additional excise duty. Under Notification No. 64/95-C.E. dated 16-3-1995, clearance to the Naval Vessels is exempted from payment of basic excise duty and hence the refund claims. The refund claims have been rejected on the following grounds: (a) The procedure prescribed has not been followed by the appellants. (b) Reliance Industries Ltd. have not reversed the Cenvat credit taken as required under Rule 6(3) Cenvat Credit Rules, 2004. (c) The appellants could not correlate between the goods purchased from Reliance Industries Ltd. and supplied to Naval. (d) The buyer cannot file refund claims and only manufacturer is eligible. 3. Hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .) = 2008 (9) S.T.R. 597 (Kar.) (ii) Karnataka State Agro - 2005 (188) E.L.T. 197 (Tri.) (iii) Power Grid Corpn. - 2008 (223) EL.T. 661 (Tri.) (iv) Mafatlal Industries -1997 (89) E.L.T. 247 (S.C.) In addition, it was also pointed out on behalf of the appellants that similar issue was decided in favour of the appellant by Commissioner (Appeals) vide Order No. AT/346/M-II/2006 dated 23-5-06. The Committee on Disputes did not permit CBEC to pursue the issue before Tribunal and the order became final and in respect of this claim, they also submitted the Minutes of COD dated 21-9-2006. 4. On behalf of the Department, it has been argued that as per Notification No. 64/95-C.E., the supply has to be made from the manufacturer directly to the N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stores for consumption on board a vessel of Indian Navy. There is no condition or procedure prescribed in this regard. The law is settled that if the exemption could not be claimed at the time of supply of goods, it could be claimed later by way of a refund claim - Bharat Earth Movers Ltd. v. Collector - 1901 (52) E.L.T. 600 (T); CCE v. ITC Ltd - 1993 (67) E.L.T. 852 (T). The condition read by the adjudicating authority that it was required to be established that the same goods, which had suffered duty had been in fact supplied to Indian Navy is not present in the Notification or the general law of Central Excise. The supply to Indian Navy without, Central Excise Duty is not in dispute and is also confirmed by Indian Navy through the lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they did not allow the department to file appeal but allowed the IOCL to file appeal clearly shows that on the one hand, the order of the Commissioner (Appeals) attains finality and on the other hand, the Government intends that this facility should be extended to IOCL. We also agree that there is no dispute as regards the exemption and the only difficulty is that the supply has not been made directly from the manufacturer to the Navy which at best be said to be a procedural omission. 7. As regards the reversal of credit, we find that show cause notice has been issued to Reliance Industries Ltd. and it will reach logical conclusion. As regards the correlation, we are not convinced of the arguments put forth by the Department. So long a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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