2019 (9) TMI 1671 - AT - Central Excise

Utilization of CENVAT Credit for payment of Excise Duty - goods procured duty free under Notification No. 43/2001-CE(NT) and cleared without use for intended purpose - HELD THAT - The identical issue has been considered by this Tribunal in the case of M/S. SHREE RAJASTHAN SYNTEX LTD., SHRI S.K. BHANDARI AND SHRI V.K. LADIA VERSUS CCE, JAIPUR-II 2016 (3) TMI 200 - CESTAT NEW DELHI and the payment of duty on the goods procured under Notification 43/2001-CE(NT), by utilization from cenvat credit for payment has been allowed. The submission of Ld. AR that the facts are different in both the cases, it is found that fact will not have any implication for the reason that the issue involved is payment of duty on the goods procured under Notification 43/2001-CE(NT) by utilizing cenvat credit. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether excise duty can be paid from cenvat for goods procured duty-free under Notification No. 43/2001-CE(NT) and cleared without use for intended purpose.

Analysis:
The issue in this case revolved around the payment of excise duty for goods procured duty-free under a specific notification and cleared without being used for their intended purpose. The appellant argued that a previous decision by the Tribunal supported the utilization of cenvat credit for duty payment in such cases. The respondent, however, contended that the facts of the present case differed from the previous case, as the goods were diverted to a sister concern without being used in the manufacture of exported goods. After hearing both sides and examining the records, the Hon'ble Member (Judicial) noted that the central question was whether duty payment could be made using cenvat credit for goods procured under the mentioned notification but not utilized for manufacturing exported goods. The Member found that a previous Tribunal decision had allowed duty payment through cenvat credit in a similar scenario. Despite the respondent's argument about differing facts, the Member concluded that the core issue was the duty payment for goods procured under the notification using cenvat credit. Consequently, the decision of the previous case was deemed applicable, and the impugned order was set aside, allowing the appeal.

This judgment clarifies the applicability of cenvat credit for duty payment on goods procured under a specific notification but not used for their intended purpose. It emphasizes the importance of the central issue of duty payment in such cases, irrespective of minor factual distinctions. The decision provides guidance on utilizing cenvat credit for excise duty payment in similar scenarios, ensuring consistency in interpreting and applying relevant laws and notifications.