9911796707
TMI Blog2018 (7) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... 4(3) of the Central Excise Rules states that putting the manufactured goods for any use within the factory of production for manufacture of any other commodity i.e. captive consumption, amounts to deemed removal of goods. Accordingly, the liability of excise duty arises even where the goods manufactured are used within the factory of production. Cenvat Credit cannot be denied to the appellant assessee when the department has accepted the duty paid on control samples. Appeal allowed - decided in favor of appellant. - Appeal No. E/76835/16 - FO/A/76105/2018 - Dated:- 12-3-2018 - SHRI P.K. CHOUDHARY, MEMBER(JUDICIAL) And SHRI C.J. MATHEW, MEMBER(TECHNICAL) Shri Ravi Raghavan, Advocate Shri H. Shukla, C.A. for the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not claiming remission of excise duty at the time of destruction of the control samples in its factory in terms of Rule 21 of the Central Excise Rules, 2002. Show cause notice was issued for alleged violation of the provisions of the Notification No.20-2007-CE dated 25.04.2007 as amended and the provisions of Rule 3(4) of the Cenvat Credit Rules, 2004 for taking benefit of exemption amounting to ₹ 44,902/- by way of self-credit of duty paid on samples and also by wrongly availing and utilizing of Cenvat Credit of ₹ 56,733/- on inputs used in the manufacture of control samples for the period from October 2012 to September 2013. The adjudicating authority confirmed the demand of erroneous self-credit taken for ₹ 44,902/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the remission scheme because the entire duty paid on the control samples would have been remitted as against limitation of re-credit at 36%. The ld.Advocate also submits that the department contends that no duty of excise was payable even in that case as they cannot retain the duty paid on control samples. It is the contention of the appellant that Notification No.20/2007-CE (supra) has not been listed under Rule 3(4) of Cenvat Credit Rules, 2004 and accordingly the proviso to the Rules is not applicable in the instant case. 3. The ld.DR appearing on behalf of the Revenue reiterates the discussions and findings of the lower authorities. 4. Heard both sides and perused the appeal records. 5. We observe that the control samples in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside. 6. In our considered view, Cenvat Credit cannot be denied to the appellant assessee when the department has accepted the duty paid on control samples. The appellants have also submitted that they have in fact suffered a loss by paying excise duty and claiming self-credit in respect of remission. The amount of excise duty paid, credit taken on inputs as well as losses on account of claiming remission is detailed in the table given below:- Particulars Amount (Rs.) Excise duty paid on control samples for which Appellant is entitled for remission under Rule 21 of the Central Excise Rules, 2002 (A) 1,28,470/- Credit on inputs used in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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