2017 (1) TMI 218

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..... e assessee is entitled to beneficial exemption Notification - appeal dismissed - decided against appellant-Revenue.
Shri Ramesh Nair, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri Ashuthosh Nath, Asstt. Commissioner (AR) for the appellant None for the respondent 01-12-2016 Per: Ramesh Nair: The fact of the case is that the appellant is engaged in the manufacture of aluminium sheets and circles and aluminium utensils falling under Chapter 76 of the Schedule to the Central Excise Tariff Act, 1985. They were also availing CENVAT credit facility of duty paid on inputs as well as capital goods under Rule 3 of CENVAT Credit Rules 2001. 2. After scrutiny, a show cause notice was issued wherein it was alleged that the resp .....

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..... nal No. 18/US-80C/2005 dated 09/03/2005 the appellant filed appeal before the Commissioner (Appeals) who allowed the appeal and set aside the order-in-original. Therefore, Revenue is before us. 3. Shri Ashuthosh Nath, Learned Asstt. Commissioner (AR) appearing on behalf of Revenue submits that it is undisputed that the respondent has availed CENVAT credit in respect of furnace oil and therefore, violated condition No. 3 of the Notification 3/2001-CE, 10/2002-CE and 6/2003-CE. Accordingly, they were not entitled for the exemption Notification. In respect of the submissions he placed reliance on the following judgments: i. Uttam Industries v. Commissioner of Central Excise, Haryana 2011 (265) ELT 14 (SC); ii. Kartar Rolling Mills v. Commis .....

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..... nd accordingly allowed the appeal of the assessee-respondent. The relevant findings of the Commissioner (Appeals) is reproduced below: "Having examined the entire issue I find that no doubt the furnace oil on which credit has been availed has been utilised in directly in the manufacture of circles/utensils. Having reached this conclusion, now I have to examine whether, once the appellant reverse the modvat credit to the extent which has gone into the manufacture of concessional goods, whether benefit of exemption would be admissible or not. These issues have already been settled in favour of the appellant by the Hon'ble Supreme Court in case of Chandrapur Magnet Wire Pvt Ltd 1996 (81) ELT 3 wherein the Hon'ble Court has held that once th .....

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