2016 (7) TMI 81 - AT - Central Excise

Eligibility to the benefit of Notification No. 8/2003-CE dated 01.3.2003 - Held that - The condition (iii) of Para 2 of the said Notification is very specific and the reason/cause behind its non-fulfilment, in our opinion, is irrelevant. Accordingly, we do not see any reason to interfere with the findings of the learned Commissioner (Appeals) confirming the duty and setting aside the penalty imposed as the appellant have simultaneously availed the exemption under Notification No. 08/2003-CE as well as CENVAT credit scheme which is not permissible as rightly held by the lower authority. The plea of appellant that they have not availed credit of duty paid on inputs up to 29.10.2006 used in the manufacture of any specified/ non-specified goods is not acceptable as the appellant himself committed that they have utilised the credit during transitional period. Further, the appellant has not put on record that they have maintained a separate stock which remains unutilised up to the aggregate value of first clearance of Rs. One crore during the financial year 2006-07 as argued. - Decided against assessee

Summary

Issues:
1. Applicability of Notification No. 8/2003-CE dated 01.3.2003
2. Availment of SSI exemption and CENVAT credit simultaneously

Analysis:

Issue 1: Applicability of Notification No. 8/2003-CE dated 01.3.2003
The case involved a dispute regarding the eligibility of the appellant for the benefit of Notification No. 8/2003-CE dated 01.3.2003. The Commissioner (Appeals) examined the provisions of the said Notification and observed that the prime condition for availing the benefit was that the manufacturer should not avail the credit of duty on inputs used in the manufacture of specified goods cleared for home consumption. The appellant had availed CENVAT credit on inputs used in the manufacture of PD Pumps, which were not specified under the SSI exemption Notification. The Commissioner (Appeals) found that the appellant had simultaneously availed the exemption under Notification No. 8/2003-CE as well as the CENVAT credit scheme, which was not permissible. The Commissioner (Appeals) upheld the demand within the provisions of Central Excise Rules and Notification, concluding that the appellant was not eligible for the benefit of the said Notification.

Issue 2: Availment of SSI exemption and CENVAT credit simultaneously
The Tribunal agreed with the findings of the Commissioner (Appeals) regarding the non-fulfillment of condition (iii) of Para 2 of the Notification, stating that the reason behind its non-fulfillment was irrelevant. The Tribunal held that there was no reason to interfere with the Commissioner (Appeals)'s findings. Consequently, the Tribunal upheld the impugned order and rejected the appeal, affirming the decision that the appellant was not entitled to avail the SSI exemption and CENVAT credit simultaneously.

In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) regarding the ineligibility of the appellant to avail the benefit of Notification No. 8/2003-CE dated 01.3.2003 due to the simultaneous availment of SSI exemption and CENVAT credit. The Tribunal found no reason to interfere with the Commissioner (Appeals)'s findings and rejected the appeal accordingly.