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TMI BlogInclusion of show cause notice’s issued in relation to levy of CVD on vessels imported for breaking in the "Call-Book"X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been received in the Board from trade and field formations in relation to Judgement of Hon ble High Court of Gujarat passed in SCA No. 10607 of 1995 filed by M/s Shivam Engineering Company and others reported as [2014-TIOL-1563- HC-AHM-CUS]. A SLP has been filed by the department in Hon ble Supreme Court against this order. 2. In the said judgement, Hon ble High Court has held that duty under Central Excise Act, 1944 can be levied, if the article has come into existence as a result of production or manufacture. Articles which are not produced or manufactured cannot be subjected to levy of excise duty. On the import of like article, no additional duty can be levied under section 3(1) of the Customs Tariff Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efer para3(i) above] shall be kept in call book till the SLP filed by the department in the Hon ble Supreme Court is decided. 5. Show Cause Notice denying Cenvat Credit of CVD paid voluntarily by the importers at the time of import is not warranted . It is well settled position in law that a buyer may avail Cenvat Credit, if supplier has paid duty. In this regard following case law may be referred- CCE vs. CEGAT2006 (202) ELT 753(Mad HC DB), CCE vs Ranbaxy Labs Ltd. [2006(203) ELT 213(P H HC DB)] , Commissioner of Central Excise, Chennai-I vs CEGAT, Chennai reported as [2006(202)ELT.753(MAD.) ]. Credit is accordingly admissible for duty paid voluntarily. 6. Thus, once the importer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004 was accordingly amended to prescribe that Cenvat credit shall not be allowed in excess of 85% of the additional duty of customs paid on ships, boats etc. imported for breaking. 9. Further, amendment in Rule 6 of CENVAT Credit Rules, 2004 was carried out in budget of 2015, to provide that now credit is required to be reversed even for non- excisable goods produced as byproducts in the process of manufacture of excisable goods. This amendment has brought non-excisable goods and exempt goods at par and no credit is now available on either of them. The explanation inserted in Rule 6 is as follows:- Explanation1- For the purpose of this rule, exempted goods or final products as defined in clause (d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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