Custom, Excise & Service Tax Tribunal
M/S. Bal Pharma Ltd vs Commissioner Of Central Excise, ... on 9 January, 2015
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Application(s) Involved: E/Stay/21890/2014 in E/21700/2014-SM Appeal(s) Involved: E/21700/2014-SM [Arising out of Order-in-Appeal No 86/2014-CE (De Novo) dated 28/02/2014 passed by Commissioner of Central Excise, BANGALORE-I ( Appeal). ] For approval and signature: HON'BLE SHRI ARCHANA WADHWA, 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? 2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3 Whether Their Lordships wish to see the fair copy of the Order? 4 Whether Order is to be circulated to the Departmental authorities? M/s. Bal Pharma Ltd No.21/22 Bommasandra Industrial Area, Hosur Road BANGALORE - 560099 KARNATAKA Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax Bangalore-I Commissionerate, POST BOX No. 5400, CR BUILDINGS, BANGALORE 560 001. KARNATAKA Respondent(s)
Appearance:
Ms. Padmini Sundaram, Advocate V.M. DOIPHODE & CO. 285,Shahid Bhagat Singh Road, Chamber Nos 44 & 45, 5th floor, Sucheta Niwas, MUMBAI - 400001 MH For the Appellant Mr. N. Jagadish, Superintendent (AR) For the Respondent Date of Hearing: 09/01/2015 Date of Decision: 09/01/2015 CORAM:
HON'BLE SMT. ARCHANA WADHWA, JUDICIAL MEMBER Final Order No. 20051 / 2015 Per : ARCHANA WADHWA The appellant is engaged in the manufacture of P & P Medicaments and was clearing their final products on payment of duty. However, one consignment was cleared by them by claiming the exemption Notification No.48/2008-CE dated 2.9.2008, which exempts clearances made for flood victims subject to fulfillment of certain conditions. There is no dispute that the said conditions stand fulfilled by the appellant and the benefit of Notification was available to them.
2. However, subsequently the Revenue raised the show-cause notice alleging that the appellants have not maintained separate input credit records in respect of various inputs used in the manufacture of dutiable final product as also in respect of the one clearance made in terms of the Notification in question. The appellant at that point of time submitted that they would not claim the exemption benefit in respect of the said clearance and accordingly, paid the duty of Rs.2,33,277/-. The Revenue vide their impugned orders held that inasmuch as at the time of clearance, the appellant had availed the exemption, they were required to pay the duty in terms of the provisions of Rule 6(3) of CENVAT Credit Rules. Accordingly, they confirmed the amount of Rs.3,61,670/- along with imposition of penalty under Rule 15 of CENVAT Credit Rules.
3. After appreciating the facts, I find that the appellant was not availing the exemption regularly. The exemption in question, which is solely meant for flood victims, was availed in respect of one clearance only. In such a scenario, no assessee would keep separate cenvatable accounts in terms of Rule 6. On being pointed out by the Revenue, the appellant forgone their claim to the exemption notification and paid duty accordingly. Merely because the appellant did not pay the duty at the time of clearance, in my views, should not be adopted as a reason for confirmation of demand in terms of Rule 6(3) of CCR. The only consequence of non-payment of duty at the time of clearance of the goods would be confirmation of interest from that date till the date of payment of duty. Learned counsel agrees to pay such interest.
4. In such a scenario, I set aside the impugned order confirming the demand in terms of Rule 6 and imposing penalty on the appellant. However, the appellant would be liable to pay the interest in respect of the duty paid subsequently on the clearances effected under the exemption Notification. The stay as also the appeal gets disposed of in above manner.
(Order pronounced and dictated in open court) ARCHANA WADHWA JUDICIAL MEMBER rv 3