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2015 (5) TMI 287 - AT - Central ExciseExemption from payment of excise duty under Notification No. 76/86 dated 10/2/86 on Gas produced during the production of Sponge Iron from Blast furnace - Held that - present case is squarely covered by the decision of the Supreme Court in the matter of decision of Union of India and Ors Vs. M/s. Hindustan Zinc Ltd 2014 (5) TMI 253 - SUPREME COURT - Decided against Revenue.
Issues:
1. Whether Blast Furnace Gas is exempt from excise duty under Notification No. 76/86. 2. Whether Cenvat Credit is required to be reversed for the manufacture of Blast Furnace Gas. In the judgment, the Appellate Tribunal CESTAT MUMBAI addressed the issue of Blast Furnace Gas production by a manufacturer of Sponge Iron and steel products. The gas produced during this process was claimed to be exempt from excise duty under Notification No. 76/86. The manufacturer sold the Blast Furnace Gas to customers and paid 8% of the total price under Rule 57AD (2) (b) of the Central Excise Rules, 1944. The manufacturer later filed a refund claim, arguing that as Blast Furnace Gas was a by-product, no Cenvat Credit needed to be reversed for the inputs used in its production. Initially, the claim was rejected by the original authority but allowed by the first appellate authority. The Revenue appealed the decision. During the hearing, the Assistant Commissioner elaborated on the grounds of appeal, referencing a Supreme Court judgment in a related case. The Respondent's counsel countered by citing another Supreme Court judgment, claiming that the issue had been settled. The Tribunal examined the Supreme Court's decision and concluded that the present case fell within the scope of the previous ruling. Consequently, the appeal by the Revenue was dismissed, and the Respondent's cross objections were also disposed of accordingly. The Tribunal's decision was based on the precedent set by the Supreme Court, providing clarity on the treatment of Blast Furnace Gas in relation to excise duty and Cenvat Credit obligations.
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