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TMI Blog2017 (1) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... y from their customers? - Held that: - The Revenue has not given any acceptable reason for denying the cum-duty benefit to the manufacturer appellant - the manufacturer appellant is entitled to cum-duty benefit, where they are not collecting the duty from their customers. Whether the appellant would be entitled to facility of CENVAT credit on the inputs used in the manufacturing of the goods, when they start paying central excise duty? - Held that: - The appellant is making payment of duty of central excise on the manufacture once they crossed the SSI exemption limit. When there is payment of duty for the goods manufactured, there cannot be any reason not to offer the facility of CENVAT credit for the inputs used for such manufacturing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers are to be included in aggregate value of clearances for home consumption or not? (ii) Whether the appellant is entitled to cum-duty benefit, where they had not collected excise duty from their customers? (iii) Whether the appellant would be entitled to facility of CENVAT credit on the inputs used in the manufacturing of the goods, when they start paying central excise duty? 3. The appellant has been represented by Shri Shri Vipul Khandar, ld. Chartered Accountant and Revenue has been represented by Shri Alok Srivastava, ld. A.R. 4. Based on the appeal memorandum and written submissions, the Chartered Accountant Shri Khandar inter alia submits as under: (i) During the year 2004-05 and 200506, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the vehicles shall be the value of vehicles excluding the value of the chassis used in such vehicle . (iv) So, as per the Notification No.8/2003-Central Excise, Circular No.733/49/2003-CX, dated 6.8.2003, the value of the chassis is not to be included and appellant has rightly availed the exemption from the excise duty. 4.1 Learned Chartered Accountant further , inter alia submits as under: (i) For the period when the appellant is not eligible for SSI exemption , they are eligible to claim CENVAT credit on the inputs used in the manufacture of all the goods from 2006-07 onwards. ii) For the period where the Central Excise duty has not been collected from the customers, the appellant is entitled to bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (a) ..... (b) clearances of the specified goods wich are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods (c) ..... The appellant being engaged in the manufacture of auto body building they receive duty paid chassis from their customer on which they mount body/fabricated structures /equipment as per requirement of the customer. In terms of Para 3 of the Notification 8/2003 (supra) and Notification 6/2002-Central Excise (supra), the value of chassis supplied by their customer is to be excluded from the aggregate value of clearances. Further, serial No.214 of the Table attached to the Notification 6/2002 (supra), gives explanation that value of v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for such manufacturing. CENVAT credit is available for all the manufacturers who are paying central excise duty on the manufacturing. Therefore, the present appellant also cannot be an exception in this regard. Once the appellant has crossed the SSI exemption benefit and starts paying central excise duty on their manufacturing they would be entitled to the facility of CENVAT credit on the inputs used for their manufacturing. The CESTAT, Delhi in the case of Decent Foods (P) Ltd. (supra) held that when the assessee has been denied the SSI benefit and cleared the goods on payment of duty they would be entitled to avail credit of the duty paid on the inputs used for the manufacture of the goods. Thus, there cannot be two opinions on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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