2009 (12) TMI 783 - AT - Central Excise

Summary

Issues involved: Appeal against Commissioner (Appeals) order, cross objection connected to the appeal.

Summary:
The case involved a dispute regarding the procurement of Polyester Yarn and Viscose Yarn without payment of duty u/s Notification No.43 of 2001. The respondents were directed to pay an amount for not corresponding to SION norms. The party filed a refund claim, which was rejected. The Commissioner (Appeals) allowed the appeal, stating it was a case of refund of duty paid by mistake, not a refund of Cenvat Credit or rebate of excise duty. The Department appealed against this decision.

Upon hearing the submissions, it was noted that SION norms are based on average consumption in the industry, and actual consumption may vary. The use of duty-paid Cenvatable inputs in the manufacture of export products was acknowledged, and it was clarified that such inputs need not suffer duty. The order of the Commissioner (Appeals) allowing the refund claim was upheld, and the appeal by the Department was rejected. The cross objection supporting the Commissioner (Appeals) order was also disposed of.

The judgement was delivered on 29-12-2009 by Shri M. Veeraiyan, J.