Custom, Excise & Service Tax Tribunal
The Ugar Sugar Works Ltd vs Commissioner Of Central Excise, ... on 31 August, 2016
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Appeal(s) Involved: E/25618/2013-SM [Arising out of Order-in-Appeal No. 706-2012 dated 14/12/2012 passed by Commissioner of Central Excise (Appeals) Mangalore] For approval and signature: HON'BLE SHRI S.S GARG, JUDICIAL MEMBER 1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? Yes 3 Whether Their Lordships wish to see the fair copy of the Order? Seen 4 Whether Order is to be circulated to the Departmental authorities? Yes The Ugar Sugar Works Ltd Ugar Khurd BELGAUM DIST - 591316 KARNATAKA Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax BELGAUM NO. 71...CLUB ROAD, CENTRAL EXCISE BUILDING, BELGAUM, - 590001 KARNATAKA Respondent(s)
Appearance:
Mr. J.N. Somaiya, Adv For the Appellant Mr. Parashiva Murthy, A.R. For the Respondent Date of Hearing: 31/08/2016 Date of Decision: 31/08/2016 CORAM:
HON'BLE SHRI S.S GARG, JUDICIAL MEMBER Final Order No. 20709 / 2016 Per : S.S GARG The present appeal is directed against the Order-in-Appeal dated 14.12.2012 passed by the Commissioner (Appeals) partially upholding the order-in-original. Briefly the facts of the present case are that the appellants are the manufacturers of sugar, molasses, rectified and denatured spirit. They are availing CENVAT credit of service tax paid on GTA services on transportation of sugar cane. The bagasse, a waste product generated during the manufacture of sugar is used for manufacture of steam, which in turn is used for generation of electricity. Such electricity is generally used in relation to manufacture of excisable goods. It is seen that appellant sold a portion of the electricity during the period July 2010 to March 2011. A show-cause notice was issued to the appellant for demanding proportionate CENVAT Credit on input services wrongly availed towards electricity sold outside. The Assistant Commissioner of Central Excise confirmed the demand along with interest and imposed penalty of Rs 50,000/- under Rule 15 of CENVAT Credit Rules 2004. Aggrieved by this order, the appellant filed appeal and the learned Commissioner (Appeals) confirmed the order but reduced the penalty from Rs. 50,000/- to Rs 10,000/-. Hence the present appeal.
2. Heard both the parties and perused the records. The issue involved in the present case is whether the appellant is liable to reverse the proportionate CENVAT Credit taken on service tax paid in respect of GTA service utilized for transportation of sugar cane on the ground that a portion of GTA service involved is attributable to sugar cane used for manufacture of bagasse which is in turn is used for generation of electricity. The learned counsel for the appellant submitted that the issue involved in the present case is no more res integra in terms of the decision of the Honble Allahabad High Court in the case of Balrampur Chini Mills Ltd Vs UOI [2014(300)ELT 372 (All)]wherein the Board Circular No. 904/24/2009-CX dated 28/10/2009 requiring reversal of credit or payment of amount in terms of Rule 6 stands quashed. Besides this case, this issue has also been settled in favour of the assessee in the following cases also:
1) UOI Vs DSCL Sugar Ltd [2015(322)ELT 769(SC)
2) Gularia Chini Mills Vs UOI [2014(34)STR 175(HC)]
3) CCE Vs Shree Datta SSK Ltd [2015 (4)TMI 215 CESTAT] Following the ratio of the above said cases, I am of the opinion that the issue is squarely covered in favour of the appellant and therefore, I allow the appeal by setting aside the impugned order with consequential relief if any.
(Order pronounced in open court) S.S GARG JUDICIAL MEMBER pnr 3