2020 (6) TMI 552 - AT - Central Excise

Demand of Central Excise Duty - demand against the appellant on the ground of denial of self-credit by denying the benefit of exemption Notification No.01/2010-CE dt.6.2.2010 to the appellant - HELD THAT - In this matter, the demand has been raised consequent to denial of exemption Notification No.01/2010-CE dt. 6.2.2010 by the Commissioner (Appeals). As the said order of the Commissioner (Appeals) has already been set aside by this Tribunal vide order dt.20.5.2019, in that circumstance, the benefit of exemption Notification No.01/2010-CE dt.6.2.2010 is available to the appellant. Therefore, the proceedings were not warranted against the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against demand of duty based on denial of self-credit due to exemption notification violation.

Analysis:
The appellant, engaged in manufacturing synthetic enamel and acrylic emulsion in Jammu & Kashmir, faced a demand of duty due to denial of self-credit from exemption Notification No.01/2010-CE. The appellant had undertaken substantial expansion by investing in plant and machinery, fulfilling criteria under the notification. However, the Commissioner (Appeals) held there was a shortfall in investment, leading to denial of the exemption. Subsequently, show cause notices were issued, and duty demand was confirmed. The appellant appealed, arguing that a previous Tribunal order had set aside the denial of exemption benefit. After hearing both parties, the Tribunal found that since the Commissioner (Appeals) order had been overturned previously, the appellant was entitled to the benefit of the exemption notification. Consequently, the demand of duty was deemed unwarranted, and the impugned orders were set aside, allowing the appeals with consequential relief.