2008 (6) TMI 484 - AT - Central Excise

Cenvat/Modvat credit - final products cleared without payment of duty - Rule 57CC(1) of the Central Excise Rules, 1944

Summary

Issues:
Recovery of amount for final products cleared without duty payment under Rule 57CC(1) of Central Excise Rules, 1944.

Analysis:
The appeal by the Revenue sought recovery of an amount for final products cleared without payment of duty to specific entities during a certain period. The ld. Commissioner (Appeals) had ruled that the demand under Rule 57CC(1) was not sustainable as the final products were excisable. The appellant argued that the products, cleared without duty under an Exemption Notification, should be considered 'exempted final products' under Rule 57CC(1). The Revenue contended that in other clearances where duty was paid, an 'excisable final product' was removed. The Tribunal heard both sides and found the impugned order valid, emphasizing that for Rule 57CC(1) to apply, there must be one dutiable final product and another exempted or nil-rated final product. The Tribunal agreed with the lower authority that the requirements of the rule were not met in this case, leading to the dismissal of the appeal.

Conclusion:
The Tribunal upheld the lower appellate authority's decision, dismissing the Revenue's appeal for recovery of an amount for final products cleared without payment of duty. The Tribunal clarified the application of Rule 57CC(1) in cases involving excisable final products cleared under specific circumstances, emphasizing the need for distinct dutiable and exempted final products for the rule to be applicable.