2012 (12) TMI 976 - AT - Central Excise

Waiver of pre deposit - Denial of refund claim - CENVAT Credit - Notification No. 6/2006-C.E. - Held that - In view of the provisions of the Notification No. 6/2006-C.E. as refund claims of the applicants are already rejected by the lower authorities therefore prima facie we find that the applicants are not entitled for the credit availed of the amount equal to the amount of duty paid in excess in view of the provisions of Notification No. 6/2006-C.E. - applicants directed to deposit 50% of the duty within eight weeks - Partial tay granted.

Issues involved:
1. Refund claims rejection and demand of credit availed by manufacturer.
2. Interpretation of Notification No. 6/2006-C.E. regarding concessional rate of duty for motor vehicles registered as taxi.
3. Comparison of provisions in Notification No. 6/2006-C.E. with Notification No. 162/86-C.E.

Analysis:

Issue 1: Refund claims rejection and demand of credit availed by manufacturer:
The applicants filed 13 applications seeking waiver of pre-deposit of dues totaling Rs. 45,47,385, including interest and penalties. They manufactured excisable goods, specifically motor vehicles, and cleared them by paying Central Excise duty. Refund claims were filed under Notification No. 6/2006-C.E. for vehicles registered as taxis, allowing credit for excess duty paid. However, the adjudicating authority rejected the refund claims and demanded repayment of the credit taken. The applicants argued that they followed the Notification's provisions correctly, providing necessary certificates for vehicle registration as taxis. They contended that the rejection of refund claims was unjustified, citing a Tribunal decision supporting manufacturers in similar cases. The Revenue argued that since refund claims were rejected and not reversed within the specified time, the demand was valid.

Issue 2: Interpretation of Notification No. 6/2006-C.E. for motor vehicles registered as taxis:
The central issue revolved around motor vehicles cleared with appropriate duty but later registered as taxis, qualifying for a concessional duty rate under Notification No. 6/2006-C.E. The Notification outlines conditions for claiming credit for excess duty paid and filing refund claims within a specified period. The applicants' claims were rejected based on non-compliance with the Notification's requirements, leading to the denial of credit availed. The Tribunal emphasized the importance of adhering to the Notification's provisions for claiming benefits and credits.

Issue 3: Comparison of provisions in Notification No. 6/2006-C.E. with Notification No. 162/86-C.E.:
The applicants relied on a Tribunal decision related to Notification No. 162/86-C.E., which was upheld by the Supreme Court. However, the Tribunal noted that the provisions of Notification No. 162/86-C.E. differed from those in Notification No. 6/2006-C.E., particularly in the absence of Condition 8 present in the latter. Thus, the Tribunal concluded that the precedent cited was not directly applicable to the current case, highlighting the importance of analyzing the specific conditions of each notification.

In conclusion, the Tribunal directed the applicants to deposit 50% of the duty within eight weeks, with the remaining amount's pre-deposit waived pending appeal. The decision highlighted the significance of strict compliance with notification provisions and the consequences of non-adherence to claim benefits and credits. Compliance was required to be reported by a specified date.

This detailed analysis of the judgment covers the issues involved comprehensively, addressing the legal interpretations and implications of the Notification's provisions on the refund claims and credit availed by the manufacturer.

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