2007 (4) TMI 707 - AT - Central Excise

Summary

Issues involved: Credit of input for manufacture of Sulphuric Acid supplied under Chapter X procedure without payment of duty.

The judgment by the Appellate Tribunal CESTAT KOLKATA involved a case where the appellants took credit of input for the manufacture of Sulphuric Acid, some of which was supplied under Chapter X procedure without duty payment. The Department demanded 8% of the value of the Sulphuric Acid supplied under Chapter X procedure due to the appellants not maintaining a separate account. The appellant's advocate cited a Tribunal decision in a similar case, M/s. Central Cables Ltd. vs. CCE, where it was held that credit is not deniable when final goods are supplied under Chapter X procedure, following the Supreme Court's decision in the case of Escorts Ltd. vs. Commissioner of Central Excise. As the Department had accepted the Tribunal's decision in the case of Central Cables Ltd. and did not file further appeal, the Tribunal in this case set aside the impugned order and allowed the appeal, holding that the credit is not deniable for Sulphuric Acid supplied duty-free under Chapter X procedure.

The appeal was allowed by the Tribunal, and the decision was dictated and pronounced in the open Court.