Custom, Excise & Service Tax Tribunal
Albright & Wilson Chemical India Ltd vs Commissioner Of Central Excise, Thane on 8 April, 2011
IN THE CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH AT MUMBAI
Application No. E/S/341/10 in Appeal No. E/1480/09
(Arising out Order-in-Original No. 01/Remission/BR-01/TH-1/2009 dated 7.10.2009 passed by the Commissioner of Central Excise, Thane I)
For approval and signature:
Honble Mr. B.S.V. Murthy, Member (Technical)
Honble Mr. Ashok Jindal, Member (Judicial)
1. Whether Press Reporters may be allowed to see Yes
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the No CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy Seen
of the Order?
4. Whether Order is to be circulated to the Departmental Yes
authorities?
Albright & Wilson Chemical India Ltd.
Appellant
Vs.
Commissioner of Central Excise, Thane
Respondent
Appearance:
Shri H.C. Daruwala, Advocate for the appellant Shri V.K. Singh, SDR for the respondent CORAM:
Honble Mr. B.S.V. Murthy, Member (Technical) Honble Mr. Ashok Jindal, Member (Judicial) Date of hearing : 08.04.2011 Date of decision : 08.04.2011 O R D E R No:..
Per: Shri B.S.V. Murthy, Member (Technical) During the floods in Mumbai, the finished goods as well as work in progress got damaged. Consequently, the appellant filed an application for remission of duty payable on the finished goods on 23.8.2006 and filed another application on 7.4.2008 requesting for remission of duty in respect of work in progress. As regard finished goods, in the impugned order, the ld. Commissioner has held that the damaged finished goods were cleared at salvaged value and since the goods were cleared on payment of duty, question of remission does not arise. As regards the second application relating to work in progress, the ld. Commissioner has held that Rule 21 of Central Excise Rules, 2002 do not provide for remission in the case of goods which have not attained the state of finished product and entered in the stock register. A stay application has been filed by the appellant. Since the issue involved is short one, we allow the stay application and take up the appeal itself for final disposal. The only dispute is with regard to rejection of remission of delay on goods which were in the stage of work in progress. As held by the ld. Commissioner, Rule 21 of Central Excise Rules, 2002 does not provide for remission of duty on goods which have not attained stage of finished product and entered in the stock register. As regards the observation of Commissioner in para 9 it has been submitted by the appellant that the appeal has been filed only because of these observations out of abundant caution. In this para, the Commissioner has observed that the instruction issued in the circular no. 650/41/2002/CX dated 7.8.2002 provides that CENVAT credit on duty paid on inputs contained in finished product would be admissible but before granting remission, it should be ensured that the insurance amount claimed by the assessee does not include the duty element of inputs used in the manufacture of said goods taken as credit. He has also observed that there is no evidence on record to show in this regard.
2. We have considered the submissions. We find that there is no confirmation of duty demand by the Commissioner in the order at all. As regards rejection of application of remission of duty on goods in the state of work in progress, the decision of the Commissioner is in accordance with law. We cannot be going into events that may happen after the orders are passed. Further, this order was passed in 2009 and the ld. advocate has not indicated whether the department has taken any further action till date. Under these circumstances, we find no merit in the appeal and accordingly reject the same. The stay application as well as the appeal are decided in the above manner. (Dictated in Court) Ashok Jindal B.S.V. Murthy Member (Judicial) Member (Technical) SR 3