9911796707
TMI Blog2015 (4) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... lant which was otherwise available. - After discussing Rule 57 AG (2) and interpreting the same, the Commissioner took the view that the said Rule would not come as a handicap in the way of the appellant in claiming the benefit of the said Notification inasmuch as it nowhere provides that the MODVAT credit balance which was there with the appellant had to be debited before exercising the option to avail the exemption under the Notification. - interpretation given by the Commissioner on the facts of the present case is completely valid and correct. Contrary view which is taken by the CESTAT is unsustainable. - Decided in favour of assessee. - Civil Appeal No. 6342 of 2004 - - - Dated:- 15-4-2015 - A. K. Sikri And Rohinton Fali Nariman,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued to the appellant on 27.03.2001 calling upon them to show cause as to why central excise duty of ₹ 14 ,28,370 be not recovered from the appellant under Section 11A of the Central Excise Act as duty payable on the finished goods manufactured and cleared by the appellant during the period 01.04.2000 to 16.09.2000. The main reason for issuance of show cause notice was that the appellant had not debited the balance of ₹ 86,222/- on 01.03.2000, when it had started availing the exemption from payment of duty under Notification 8/2000 but had done subsequently i.e. 03.10.2000. The appellant submitted reply to the show cause notice in which it was pleaded that all the conditions contained in Notification 8/2000 had been fulfilled by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / cenvat credit are contained in sub- paras 2 (iii) and (iv). Accordingly to those paras no credit of duty paid on inputs used in the manufacture of the specified goods cleared for home consumption shall be availed and no credit of duty under rule 57Q with respect of capital goods shall be utilized with respect to the aggregate value of first clearances not exceeding Rs.One hundred lakhs. The Commissioner thus took the view that merely because the earlier credit of ₹ 86 ,222 /- was debited on 03.10.2000 would not deny the benefit of the exemption Notification to the appellant which was otherwise available. We may record at this stage that the Commissioner was conscious of the provisions of Rule 57 AG (2) of the Central Excise R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in stock or used in any finished excisable goods lying in stock on the date when option to avail exemption of duty was exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining was to lapse and was not to be utilized for payment of duty on any excisable goods. 4.8 The text of Rules 57AG (2) is clear and credit attributable to inputs as such or contained in finished goods was to be debited only if there was balance in the modvat credit amount. If there was no balance no debit was required to be made. Neither Rule 57AF nor any other rule or notification lays down that in the event of non debiting of aforesaid amount the benefit available under Notification No.8 /200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
