9911796707
TMI Blog2017 (11) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ority which will determine the amount which is required to be reversed - appeal allowed by way of remand. - E/2436/2010, E/2437/2013-SM - 22702-22703/2017 - Dated:- 3-11-2017 - Shri S. S. Garg, Judicial Member Shri P.C. Anand, Authorized Rep. For the Appellant Smt Kavitha Poduval (AR) For the Respondent ORDER Per: S.S GARG These two appeals have been filed by Bannari Amman Sugars Ltd. and Shri P. Manickavasagan, General Manager, Bannari Amman Sugars Ltd. against the impugned order dated 19.08.2010 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has upheld the Order-in-Original and rejected both the appeals filed by the company as well as General Manager. Briefly the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rule 2(1), Rule 3 and Rule 6(2) of CCR 2004, and assessee was therefore issued with a show-cause notice. After following the due process of law, the adjudicating authority vide Order-in-Original has confirmed various demands and also demanded interest and imposed equal penalty. Further the original authority has imposed a penalty of ₹ 50,000/- (Rupees Fifty Thousand only) on the General Manager under Rule 26 of Central Excise Rules, 2002. The adjudicating authority has also appropriated an amount of ₹ 10, 62, 521/- (Rupees Ten Lakhs Sixty Two Thousand Five Hundred and Twenty One only) already paid by the appellant. Aggrieved by the said order, appellant filed two appeals before the Commissioner (Appeals) and both the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annexure to the show-cause notice which refers to the proposition of the value of non-excisable goods and the value of excisable goods as 94% and 6%. Consequently the amount of credit to be expunged has been arrived at ₹ 8,24,761/- (Rupees Eight Lakhs Twenty Four Thousand Seven Hundred and Sixty One only). He also submitted that instead of applying the same percentage for the input services credit, the Department considered a different methodology as seen from the work sheet attached, the proportion of power sold in terms of units has been considered and arrived at for the purposes of split percentage of 30:70. The input services in question in fact with reference to the co-generated plant and the condition had been stipulated only o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating authority for re-computation of the demand keeping in view the judgment of the Alllahabad High Court in the case of Gularia Chini Mills cited supra. 4. On the other hand the learned AR reiterated the findings of the impugned order. 5. After considering the submissions of both the parties and the perusal of the material on record and the judgment of the Tribunal in the case of DSM Sugar Mills and Sharad S.S.K. Ltd. cited supra , I find that the appellant had reversed a sum of ₹ 10,30,586/- (Rupees Ten Lakhs Thirty Thousand Five Hundred and Eighty Six only) and ₹ 20,601/- (Rupees Twenty Thousand Six Hundred and One only) (as cess) before the issue of show-cause notice and further a sum of ₹ 10,47 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintenance or repair services will apply only when the same has been availed in respect of equipment used for generation of electricity. Therefore, reversal of credit is required only in respect of input services which have nexus with generation of electricity. The appellant is at liberty to lead evidence in this regard and if they are able to prove that the inputs and input services have no nexus with electricity generation, the question of reversal of credit taken will not arise at all. For this limited purpose the matter has to go back to the adjudicating authority for re-computation of the demand. 6. Therefore keeping in view the aforesaid discussion, this case needs to be remanded back to the original authority which will determin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
