9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 1114 - AT - Central ExciseDemand of duty under the provisions of Section 11D of the Central Excise Act, 1944 - appellants availed Modvat credit in respect of inputs used in the manufacture of exempted goods, on being pointed out, the appellants reversed the amount of 8% on the post clearance - It was observed that the amount reversed by the appellants @ 8% of the value of the goods in terms of the Rule 57CC was being recovered by them from their buyers Held that - appellants are not required to pay any amount under Section 11D of the Central Excise Act, 1944, order is set aside, the appeal is allowed Unison Metals Ltd., (2006 - TMI - 49045 - CESTAT, PRINCIPAL BENCH, NEW DELHI)
Issues:
Appeal against demand of duty under Section 11D of the Central Excise Act, 1944 for availing Modvat credit in respect of inputs used in the manufacture of exempted goods. Analysis: 1. The appellant challenged the order confirming the duty demand under Section 11D of the Central Excise Act, 1944. The appellants had been availing Modvat credit for inputs used in the manufacture of final products, including exempted goods. Upon discovering this, they reversed 8% of the value of goods and started clearing exempted goods on Central Excise invoice after payment under Rule 57CC. The amount reversed was being recovered from buyers. A show-cause notice was issued for recovery under Section 11D, which was confirmed by lower authorities, leading to the appeal. 2. The appellant's representative cited a precedent by the Larger Bench in the case of Unison Metals Ltd. vs. CCE, Ahmedabad, where it was held that Section 11D applies only when equivalent duty is not deposited during goods removal. The Tribunal noted that the appellants had indeed reversed an amount equivalent to 8% of the sale value of goods during removal. Relying on the Unison Metals Ltd. decision, the Tribunal concluded that no further payment under Section 11D was required. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief.
|
