2015 (12) TMI 428 - AT - Customs

Denial the benefit of exemption Notification No. 22/99-Cus - SAD - appellant has availed Modvat Credit under Rule 57A of Central Excise Rules, 1944 - Held that - There is no dispute that the goods imported by the appellant have been sold under various sales invoices to various customers. - Certificate issued by the Superintendent dated 15.01.2002 certifies that the appellant is engaged in the trading activity. They have neither availed the Modvat Credit under Rule 57A nor have they passed on the Modvat Credit under Rule 57G of Central Excise Rules, 1944. - reason for denial of exemption Notification No. 22/99 - Decided against assessee.

Summary

Issues Involved:
Denial of benefit of exemption under Notification No. 22/99-Cus due to availing Modvat Credit under Rule 57A of Central Excise Rules, 1944.

Detailed Analysis:

Issue 1: Denial of exemption under Notification No. 22/99-Cus
The appeal was filed against Order-in-Appeal No. 249/04/MCH dated 03.06.2004, where the Ld. Commissioner (Appeals) rejected the appeal of the appellant. The adjudicating authority in the Order-in-Original dated 28.12.2001 denied the benefit of exemption Notification No. 22/99-Cus and confirmed a demand of Rs. 31,824 for special additional duty, citing the availing of Modvat Credit under Rule 57A of Central Excise Rules, 1944 as a violation of the notification's condition.

Issue 2: Compliance with Notification conditions
The appellant filed two declarations, one for availing benefits under Notification No. 22/99 and the other for proforma credit under Rule 57A. The Ld. Commissioner found that the appellant did not submit any documents regarding trading of goods, and the Certificate issued by Central Excise did not demonstrate the trading of goods, leading to the conclusion that the condition of Notification No. 22/99 was not fulfilled.

Issue 3: Appellant's submissions
The appellant argued that the goods imported were traded, supported by sales bills produced as evidence. The Certificate issued by the Superintendent of Central Excise certified the appellant's engagement in trading activities without availing Modvat Credit under Rule 57A or passing on the credit under Central Excise Rules, 1944, asserting compliance with the notification's conditions.

Judgment:
Upon careful consideration, the Tribunal noted that the goods imported were indeed sold under various sales invoices, and the Certificate from the Superintendent confirmed the appellant's engagement in trading activities without availing Modvat Credit. Consequently, the Tribunal found no reason to deny the exemption under Notification No. 22/99, as the appellant had fulfilled the notification's conditions. Therefore, the impugned order was set aside, and the appeal was allowed.