2018 (9) TMI 1128 - AT - Central Excise

Recovery of duty - goods which were procured under the CT-I Certificate without payment of duty from the manufacture for the purpose of export of the same - Held that - The proceedings indicate that through ARE-I No. 75 dated 04.12.2007, the appellant had exported 2000 Kg of Aluminium Phosphide 56%. Therefore, we hold that the appellant was not entitled to pay Central Excise Duty involved in 2000 Kg of Aluminium Phosphide so procured by the appellant. The appellant was also, therefore, not required to pay interest on the amount of Central Excise Duty involved in said 2000 kg of Aluminium Phosphide - appeal allowed in part.

Summary

Issues: Recovery of duty on goods procured under CT-I Certificate without payment for export.

Analysis:
1. The issue in the present appeal revolved around the recovery of Central Excise Duty on goods procured under the CT-I Certificate without payment of duty for export. The appellant had procured 4500 Kgs of Aluminium Phosphide 56% for export without paying duty, resulting in a confirmed duty of &8377; 18,0951/-. However, it was noted that the appellant had actually exported 2000 Kg of the procured goods through ARE-I No. 75 dated 04.12.2007. Consequently, the Tribunal held that the appellant was not liable to pay duty on the 2000 Kg of Aluminium Phosphide exported, and thus, the duty, interest, and penalty related to this quantity were set aside.

2. The Tribunal further confirmed the demand for Central Excise Duty on the remaining 2500 kg of Aluminium Phosphide along with interest. However, the penalty imposed was reduced to 25% under the provisions of Section 11 AC of the Central Excise Act, 1944. This decision was based on a precedent set by the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise vs. G.P. Prestress Concrete Works reported at 2015 (323) ELT 709 (Guj.). The Tribunal modified the impugned order accordingly, allowing the appeal in part by setting aside the confirmation of demand for the 2000 kg of Aluminium Phosphide exported without duty payment.

3. In conclusion, the Tribunal partially allowed the appeal, modifying the order to exempt the appellant from duty, interest, and penalty related to the 2000 kg of Aluminium Phosphide exported under the CT-I Certificate without payment. The remaining 2500 kg of the procured goods were subject to the confirmed duty and reduced penalty, as per the provisions of the Central Excise Act and the precedent cited from the Gujarat High Court.

(Dictated & pronounced in the Court)