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TMI Blog2011 (2) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... ount representing excise duty is recovered from the buyer on the basis of documents - Held that:- In the case of Unison Metals Ltd. Case (2006 (10) TMI 171 - CESTAT, NEW DELHI) assessee had paid 8% of the value of the goods in terms of Rule 57CC at the time of removal from the factory. The amounts so paid were recovered from their buyers and in the sales documents the amount was described in different terms such as '8% reversal of assessable value', '8% value' , '8% duty' etc. Since the amounts so collected from the buyers did not remain unpaid to the revenue and no amount was retained by the assessee, the Tribunal Larger Bench held that section 11D has no application, provisions of section 11D of the Central Excise Act, 1944 is not attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand of Rs. 23.01.641/- under section 11A of CEA, 1944 read with rule 6(3)(b) and Rule 12 of Cenvat Credit Rules 2002 and Rule 14 of Cenvat Credit Rules, 2004. Further interest under section 11AB on the amount confirmed along with a penalty of Rs.23,01,641/- under Rule 15 of the Cenvat Credit Rules read with section 11AC of the said Act was also ordered to be recovered. In appeal, the lower appellate authority, Commissioner (Appeals), Central Excise, Pune III Commissionerate, in OIA No. PIII/183/08 dated 25-9-2008 upheld the said order-in-original and rejected the appeal. The appellants are in appeal before us against the said order of the lower appellate authority. 2. The learned counsel for the appellant relies on the following j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame was challenged by the Department before the hon'ble High Court of Gujarat and the appeal was dismissed by the hon'ble High Court. In all the other judgements cited above, the same conclusion has been reached by the Tribunal. In other words, the provisions of section 11D of Central Excise Act is not attracted when an assessee pays an amount of 8% or 10% of the value of the goods in respect of exempted clearances under the provisions of Cenvat Credit Rules and recovers the same from the buyers. This legal position has also been accepted by the Central Board of Excise & Customs, who, in the Circular No. 870/8/2008-CX dated 16-5-2008 has clarified as follows in para 4 thereof. "4. In the light of what is stated above, it is clarified that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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