2015 (5) TMI 56 - AT - Central Excise

Availment of CENVAT Credit - Clearance of goods without payment of duty under Notification No. 29/2004-CE and Notification No. 30/2004-CE both dated 9/7/2004 - Held that - Documents only gives the quantity and value of the goods exported and cleared in the domestic market and goods cleared under Notification No. 29/2004 and 30/2004 dated 9/7/2004. Further, the appellant/assessee has given the data relating to packaging material on which, they have availed the Cenvat credit and packaging material on which they have not availed Cenvat credit. In our view the benefit of Notification No. 30/2004 and 9/7/2004 is available only when no credit on inputs is taken by them. Thus for availing exemption from payment of duty, it is incumbent part of the appellant/assessee to produce record/evidences that they have not availed or utilized packaging material (on which credit of duty was taken) in the manufacture of exempted goods. It is only when such record/evidences is available that benefit of Notification No. 30/2004 can be extended. In case they have availed the credit of duty on the packaging material which in turn is used for packaging of exempted goods, benefit of Notification No. 30/2004 will not be available. Appellant has not produced the said data. Original authority has also not gone into such details. - Rule is not relevant as exemption itself is subject to the condition of non-availment of Cenvat Credit on inputs - Matter remanded back - Decided in faovur of assessee.

Summary

Issues:
- Duty recovery already made by Revenue
- Appeal by both Revenue and assessee
- Availing Cenvat credit on packaging material
- Benefit of Notification No. 30/2004-CE

Analysis:
1. The judgment notes that the duty amount has been recovered by the Revenue, and the recovery of the balance amount is stayed as the matter is listed for final hearing and decision.

2. Both the Revenue and the assessee have filed appeals in the case. The appellants are manufacturers of various yarn types, clearing them with or without duty under specific notifications. The issue revolves around availing Cenvat credit on packaging material and the conditions for clearance without duty under Notification No. 30/2004-CE.

3. The main argument from the appellant's counsel is that they export a significant portion of their production and only a small percentage is cleared domestically. They claim Cenvat credit for only 70% of the packaging material used, arguing that no duty liability should be imposed based on this practice. They also contest the appellate authority's decision to confirm the demand based on statements rather than computerized documents.

4. The Revenue argues that the appellant failed to prove that the packaging material for which duty credit was taken was not used in clearing exempted goods under Notification No. 30/2004-CE.

5. After considering the submissions and examining the documents, the Tribunal finds that the appellant must demonstrate that the packaging material for which duty credit was availed was not utilized in manufacturing exempted goods to benefit from the notification. The Tribunal emphasizes the importance of producing evidence to show non-availment of credit on inputs for exemption from duty.

6. The Tribunal sets aside the previous order and remands the case to the original authority for a detailed examination. The appellant is directed to provide necessary details regarding the utilization of packaging material for exempted goods, and the original authority will make a decision after a personal hearing. The judgment allows the appeals by way of remand for further proceedings.