9911796707
TMI Blog2022 (10) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 01/2011-CE. As GST regime have been implemented w.e.f. 01.07.2017, the accumulated cenvat credit with the appellant assessee was available for transmission to GST regime as on 30.06.2017. In the facts of the present case, the duty have been demanded vide show cause notice dated 01.05.2018 i.e. after implementation of GST regime. It is found that there is only a venial breach of law by utilisation of cenvat credit for payment of duty for goods cleared under concessional rate during the period under dispute. It is also found that the situation is Revenue neutral as on payment of duty again in cash as demanded by the impugned order, the appellant shall be entitled to refund of equal amount being the duty discharged earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same through account current (in cash), inasmuch as the proviso under Rule 3(4) of CCR debars the appellant from discharging the duty by utilising cenvat credit. Accordingly, Revenue issued letter / notice dated 21.03.2017 and also 12.05.2017 requesting to discharging the duty in cash and in the alternative to explain the provision under which they were entitled to utilise cenvat credit. In reply, the appellant inter alia urged that apart from domestic clearance they also export their products under Rule 19 of Central Excise Rules, 2002 (under bond), resulting in accumulation of cenvat credit which they are entitled to refund under Rule 5 of Cenvat Credit Rules (proportionate amount). It is also stated that their Accountant erroneously ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t inter alia urges that admittedly the appellant have deposited the entire duty by utilising cenvat credit. Admittedly, appellant have not availed cenvat credit on inputs utilised in manufacturing of goods cleared at concessional rate of 2% under Notification No. 1/2011. The appellant had accumulated cenvat credit as they have paid higher rate of duty on other inputs like packing materials etc. Admittedly, the appellant have migrated to the GST regime and is paying duty of GST. The accumulated cenvat credit as on 30.06.2017 was available for carrying forward to GST regime. In the facts and circumstances, if the amount of duty as demanded by the impugned order is paid, the duty discharged by utilisation of cenvat credit shall become entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case, the duty have been demanded vide show cause notice dated 01.05.2018 i.e. after implementation of GST regime. Thus, I find that there is only a venial breach of law by utilisation of cenvat credit for payment of duty for goods cleared under concessional rate during the period under dispute. I also find that the situation is Revenue neutral as on payment of duty again in cash as demanded by the impugned order, the appellant shall be entitled to refund of equal amount being the duty discharged earlier through cenvat credit. Thus, I find that the appellant have not contravened the provisions of law or the rules made thereunder with intent to evade payment of duty. 11. In view of my findings and observations, I set aside the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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