2017 (9) TMI 694

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..... ut payment of duty and the duty payable on such goods is debited from the SFIS Scrip by the recipient of the goods - it cannot be said that the goods cleared by the respondent is exempted - Rule 6(3)(b) of Cenvat Credit Rules 2004 is not applicable - appeal dismissed - decided against Revenue.
Shri Ramesh Nair, Judicial Member Shri A.B. Kulgod, Asst. Commr (AR) for appellant Ms. Chandni Tanna, Advocate for respondent ORDER Per : Ramesh Nair The fact of the case is that the respondent supplied the goods without payment of duty under Notification 34/2006-CE dated 14.06.2006. The buyer of the goods is holding SFIS certificate, duty payable by the respondent has been debited by the buyer in their SFIS certificate. The case of the Depart .....

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..... atever duty payable by the appellant has been paid by the respondent by way of debit in their SFIS credit scrip. Therefore the duty discharge of the very goods supplied by the respondent, Rule 6 is not applicable in their case. They are not required to pay 10% of the value of the goods cleared under Notification 34/2006-CE. She places reliance on the decision of the Hon'ble High Court of Gujarat in the case of CCE v. Voltamp Transformers Ltd - 2013 (296) ELT A16 (Guj) which is on the identical issue. 4. I have carefully considered the submissions made by both sides. 5. I find that there is no dispute on the fact that the respondent has cleared the goods under Notification No. 34/2006-CE which was issued under SFIS Scheme. According to whi .....

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..... conditions. It can be seen from condition no. (i) that the exemption to the goods cleared from the factory premises of an assessee will be granted only if the SFIS certificate is produced before the authorities i.e. Central Excise Officer at the time of clearance and for debit of the duties leviable on the goods, but for this exemption. This would clearly indicate that the conditions in the SFIS certificate are nothing but discharge of the duty which has to be paid by the appellant to the Government of India. This would almost equal to the debits which are being made in the letter of undertaking furnished by an assessee for clearing the goods for export without payment of duty, as per provisions in Central Excise Rules, 2002, and the said d .....

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