2015 (10) TMI 885 - AT - Central Excise

Demand of differential duty - Denial of concessional rate of duty - Availment of Credit on inputs - Held that - Appellant s own case for the earlier period this Tribunal vide order dated 11.02.2005 and 17.09.2010 have allowed the appeals - Decided in favour of assessee.

Summary

Issues:
1. Entitlement to concessional rate of duty on pumpset due to credit availed on inputs for manufacturing I.C. Engine used in pumpset production.

Analysis:
The case involved the appellants, engaged in manufacturing I.C. Engine and pumpsets, facing a dispute regarding the concessional rate of duty applicable to pumpsets due to the availed credit on inputs for I.C. Engine production. The appellants were paying duty on I.C. Engines sold to customers but were also using them for captive consumption in pumpset manufacturing, for which a concessional duty rate was available if no credit on inputs was taken. The Revenue contended that since credit was availed on inputs for I.C. Engine used in pumpset production, the appellants were not eligible for the concessional rate of duty on pumpsets, leading to a demand for differential duty.

The appellant's counsel argued that previous Tribunal orders in the appellant's favor supported their claim, citing order numbers A/858-859/12/EB/CII dated 17.09.2012 and A/270-271/WZB/2005/C-IV dated 11.2.2005. The counsel sought allowance of the appeal based on the consistency of decisions in their favor by the Tribunal in similar cases from the past.

The Revenue's representative contended that the 8% payment on I.C. Engine by the appellants did not constitute a reversal of credit on inputs, thus disqualifying them from the concessional rate of duty on pumpsets. The representative referred to the Order-in-Original and the impugned order to support this argument.

Upon considering the submissions from both sides, the Tribunal noted that in the appellant's previous cases, the Tribunal had allowed the appeals, as evidenced by orders dated 11.02.2005 and 17.09.2010. Finding no reason to deviate from these decisions, the Tribunal allowed the appeal filed by the appellants, thereby resolving the issue in favor of the appellants and granting them entitlement to the concessional rate of duty on pumpsets despite availing credit on inputs for I.C. Engine production used in pumpset manufacturing.