Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (11) TMI AT This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2013 (11) TMI 1529 - AT - Central Excise


Issues:
1. Classification of Animal Feed Supplement under Central Excise Tariff Act, 1985.
2. Duty demand on Crude Vitamin A.
3. Adjustment of lapsed Modvat credit against impugned demands.

Analysis:

Issue 1: Classification of Animal Feed Supplement
The appellant, a manufacturer of Vitamin A and Animal Feed Supplement, faced a dispute regarding the correct classification of the Animal Feed Supplement under Chapter 23. The Tribunal previously held that the supplement falls under Chapter 23, a decision upheld by the Hon'ble Apex Court. This settled the classification issue, establishing that the Animal Feed Supplement is correctly classifiable under Chapter 23.

Issue 2: Duty Demand on Crude Vitamin A
The Adjudicating Authority confirmed a duty demand on Crude Vitamin A against the appellant. However, an error was noted in the computation of the demand, with the duty demand needing correction for the period May 1996 to July 1996. The appellant argued for a reduced duty demand based on this correction, which would significantly lower the total duty demand payable.

Issue 3: Adjustment of Lapsed Modvat Credit
The appellant contended that the demands confirmed pre-1st March 1997 should have allowed for the discharge of duty from the Modvat credit account before its lapse. Citing legal precedents, the appellant argued that the right to adjust tax on final products accrued when tax on inputs was paid, and the lapsed credit should be adjusted against the impugned demands. The Tribunal agreed, emphasizing that the appellant should not be denied the utilization of lapsed credit accrued prior to 1st March 1997.

In conclusion, the Tribunal allowed the appeals by setting aside the impugned orders, highlighting the appellant's entitlement to adjust lapsed Modvat credit against the duty demands confirmed for the period preceding 1st March 1997. This adjustment significantly reduced the duty liability, ensuring no additional or differential duty payment, interest, or penalties for the appellant.

 

 

 

 

Quick Updates:Latest Updates