Custom, Excise & Service Tax Tribunal
M/S. Bannari Amman Sugars Ltd vs Cce, Salem on 15 April, 2010
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No. E/230/2009
(Arising out of Order-in-Appeal No. 1/2009-CE (SLM) dated 12.1.2009 passed by the Commissioner of Central Excise (Appeals), Salem)
M/s. Bannari Amman Sugars Ltd. Appellants
Vs.
CCE, Salem Respondent
Appearance Shri P.C. Anand, Chartered Accountant for the Appellants Shri T.H. Rao, SDR for the Respondent CORAM Honble Dr. Chittaranjan Satapathy, Technical Member Date of Hearing: 15.04.2010 Date of Decision: 15.04.2010 Final Order No. ____________ Heard both sides.
2. Shri P.C. Anand, learned Chartered Accountant appearing for the appellant states that the appellants being an EOU had imported the impugned blades for use in the machines for cutting granite logs which were exported after such cutting. He states that the blades become unusable and scrap after a number of use and these have been sold outside in the DTA as scrap and duty on the same has been paid on transaction value. He challenges the duty demanded by the Department holding that the duty should have been paid on depreciated value of the blades though the differential amount has already been paid by the appellants who are seeking refund of the same.
3. Shri T.H. Rao, learned SDR confirms that the initial imports were made under Notification No. 53/97-Cus. dated 3.6.1997 and hence the scrap arising out of imported blades would be governed by the provisions of the said notification.
4. After hearing both sides I find that Condition No. 7 to the said notification would govern clearance of rejects, waste and scrap material arising in the course of manufacture in an EOU. According to the said condition, duty is payable under Section 3 of the Central Excise Act, 1944. Such payment has obviously to be made with reference to the transaction value under Section 4 of the Act. Since the appellants have paid duty on the transaction value and have only recovered that amount from their customers and paid the same to the Department, they are eligible for the refund of the additional amount they have paid subsequently at the insistence of the departmental authorities. Accordingly, the impugned orders passed by the authorities below are set aside and the appeal is allowed with consequential benefit to the appellants. (Dictated and pronounced in open court) (Dr. Chittaranjan Satapathy) Technical Member Rex ??
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