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TMI Blog2018 (8) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... t is admissible as soon as the essential conditions are specified. In the case of National Calamity Contingent Duty, it is the condition that credit of no duty, other than the credit in respect of NCCD itself can be used for payment of such duty under Rule 3(4) of the Cenvat Credit Rules, 2004 - The words “exempted goods” appearing in Rule 6 of the Cenvat Credit Rules are to be read and interpreted in the relevant context. It is not the correct interpretation that when a product is chargeable to different kinds of excise duties, the words “exempted goods” refer only to exemption from basic excise duty. The words ‘exempted goods’ refer only to a situation where the goods are exempted from all kinds of excise duties in so far as Rule 6(1) of the Cenvat Credit Rules, 2004 is concerned. If the Cenvat credit is denied in respect of inputs and capital goods merely on the interpretation that basic excise duty on the finished goods is exempted, then it would lead to an anomalous situation. It is found from the records that the appellants have been depositing the entire amount of excise duty payable on the finished goods in the ESCROW account. The Cenvat Credit being a beneficial scheme, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner in which the amount could be withdrawn from the Escrow account and the manner in which investment was to be made for the specified purposes. Notification No.8/2004-CE dated 21.01.2004, as amended by Notification No.28/2004-CE dated 09.07.2004, granted exemption from excise duty leviable under the Central Excise Act, 1944, the additional duty of excise leviable under Goods of Special Importance Act, 1957, the Special Excise duty on the National Calamity Contingent Duty (NCCD). During the relevant period, the duty called additional duty of excise was leviable under the Finance Act, 2005 and also applicable to Tobacco products. This duty AED was not exempted by the Notification No.8/2004-CE (supra) as amended and accordingly, appellants were required to pay AED under the Finance Act, 2005, and also education cess on such additional duty. Show cause notice was issued alleging that cenvat credit of duty paid on inputs and capital goods had been taken irregularly and that the same was recoverable under Rule 6(1) and Rule 3(7) (b) of the Cenvat Credit Rules, 2004. The Adjudicating Authority vide the impugned orders, demanded the payment of cenvat credit along with interest and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), and sub-section (3) of Section 136 of the Finance Act, 2001(14 of 2001), and in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 69/2003- Central Excise, dated the 25th August, 2003, published in Gazette of India, vide, G.S.R. 679(E), dated the 25th August, 2003, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling under subheading 2401.90, 2402.00, 2404.41, 2404.49, 2404.50 or 2404.99 of the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duties of excise, additional duties of excise leviable under the said Central Excise Tariff Act, the Additional Duties of Excise (Goods of Special Importance) Act and National Calamity Contingent duty leviable thereon under sub-section (1) of section 136 of the said Finance Act, subject to the following conditions, namely,- (A) The exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D), which shall be produced by the manufacturer, within a period of two weeks from the date of issue of such certificate, to the jurisdictional Central Excise Officer; (F) the investment made under this notification shall not be allowed to be withdrawn before the expiry of ten years from the date on which the investment is made except in a case where the investment withdrawn is reinvested in the same manner as specified in this notification, in any one of the States mentioned in condition (A); Provided that if the investment made under this notification is withdrawn before the expiry of ten years and is not reinvested as mentioned above, the duty which is equal to the amount so withdrawn and not so reinvested, shall be paid by the manufacturer on the date on which the investment is withdrawn. 6. We find that the Government of India had announced a special scheme of incentives in excise duty in 1999. Accordingly, Notification No.32/99 and 33/99 dated 08.07.1999, were issued by the Ministry of Finance, Department of Revenue to provide exemption from excise duty, on specified goods, manufactured in specified areas of North East. The exemption was on the excise duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ational Calamity Contingent Duty (NCCD), it is the condition that credit of no duty, other than the credit in respect of NCCD itself can be used for payment of such duty under Rule 3(4) of the Cenvat Credit Rules, 2004. The definition of exempted goods under the Cenvat Credit Rules, 2004 is as under: exempted godos means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to NIL rate of duty 9. It is our considered view that the words exempted goods appearing in Rule 6 of the Cenvat Credit Rules are to be read and interpreted in the relevant context. It is not the correct interpretation that when a product is chargeable to different kinds of excise duties, the words exempted goods refer only to exemption from basic excise duty. The words exempted goods refer only to a situation where the goods are exempted from all kinds of excise duties in so far as Rule 6(1) of the Cenvat Credit Rules, 2004 is concerned. If the Cenvat credit is denied in respect of inputs and capital goods merely on the interpretation that basic excise duty on the finished goods is exempted, then it would lead to an ano ..... X X X X Extracts X X X X X X X X Extracts X X X X
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