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2017 (1) TMI 530 - AT - CustomsBenefit of N/N. 12/2012-CE - denial on the ground that the assessee has taken the credit - Subsequently, in SRF Limited vs. CC, Chennai 2015 (4) TMI 561 - SUPREME COURT , the Apex Court has interpreted the Condition No. 20 of Notification No. 06/2002-CE dated 01.03.2002 (Sl. No. 122) which was identical to Condition No. 16 of Notification No. 12/2012-CE. It was held by the Hon ble Apex Court that no question of availing CENVAT credit under the CENVAT Credit Rules, 2002 arises where inputs are procured from a country other than India Held that - it appears that when the order in appeal was passed by the Commissioner (Appeals), the above mentioned judgments/ orders were not available. In other words, the orders passed by Hon ble Supreme Court as well as passed by Tribunal are subsequent to the impugned order. When it is so then we deem it fit to remand the matter to the original adjudicating authority to examine the claim of the assessee in the light of judgements (supra), for denovo assessment, but within a period of four months - appeal allowed by way of remand.
Issues:
- Interpretation of the condition for concessional rate of CVD on imported mobile phones. - Application of the judgment in SRF Limited vs. CC, Chennai 2012 (318) ELT 607 (SC) to the present case. - Consideration of subsequent judgments by the Tribunal and Supreme Court post the impugned order. Analysis: Issue 1: Interpretation of the condition for concessional rate of CVD on imported mobile phones The appellant imported mobile phones and paid additional customs duty at 12.5% as per the Central Excise Tariff Act, 1985. A concessional rate of CVD at 1% was available under Notification No. 12/12-CE for mobile phones under CTI 8517, subject to the condition that no credit should have been taken under the Cenvat Credit Rules, 2004 for inputs and capital goods. The department contended that the appellant did not meet this condition, leading to denial of the benefit. Issue 2: Application of the judgment in SRF Limited vs. CC, Chennai 2012 The appellant invoked the judgment in SRF Limited vs. CC, Chennai 2012, where the Supreme Court interpreted a similar condition in a notification. The Supreme Court ruled that the condition regarding Cenvat credit does not apply when inputs are procured from a country other than India. The appellant sought to apply this interpretation to their case to claim the benefit of the concessional rate of CVD. Issue 3: Consideration of subsequent judgments The Tribunal referred to a similar case involving M/s L.G. Electronics India Pvt. Ltd. where the department's consistent stand on the condition led to denial of the benefit. The Tribunal decided to remand the matter to the adjudicating authority in light of subsequent judgments by the Tribunal and the Supreme Court, which were not available when the impugned order was passed. The appellant was granted an opportunity for denovo assessment within four months, with the chance to present additional evidence. In conclusion, the Tribunal allowed the appeals by remanding the case for further examination based on the evolving legal interpretations and subsequent judgments. The decision highlighted the importance of considering judicial developments that could impact the application of conditions for concessional rates of duty on imported goods.
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