Custom, Excise & Service Tax Tribunal
Commr. Of Central Excise, Shillong vs M/S Dharampal Satyapal Ltd on 13 July, 2017
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL,
EAST REGIONAL BENCH : KOLKATA
Ex.Appeal No.173/07
Arising out of O/O No.CCE/Shillong No.02/2006 dated 30.01.2006 passed by Commr. of Central Excise , Shillong
Commr. of Central Excise, Shillong
Applicant (s)/Appellant (s)
Vs
M/s Dharampal Satyapal Ltd.
Respondent (s)
Appearance:
Shri S. S. Chattopadhyay, Supdt. (A.R.) for the Department (s) Shri T.R. Rustagi, Advocate for the Respondent (s) CORAM:
HONBLE SHRI P. K. CHOUDHARY, JUDICIAL MEMBER HONBLE SHRI B. RAVICHANDRAN, TECHNICAL MEMBER Date of Hearing : 13.07.2017 Date of Decision : 13.07.2017 ORDER NO.F/76279/2017 Per B.Ravichandran :
The appeal is against the order dt.30.01.2006 of Commissioner of Central Excise, Shillong.
2. The respondents were engaged in the manufacture of pan masala containing tobacco liable to central excise duty. They have opted to availing exemption under Notification 8/04-CE dated 21.01.2004 w.e.f. that date. The dispute in the present case relates to liability of the respondent to reverse the credit on such inputs lying in stock on that date i.e.21.01.2004, in terms of Rule 6 of Cenvat Credit Rules, 2002. Proceedings were initiated against the respondent to demand and recover the credit attributable on this account amounting to Rs.79,46,619/-. The case was adjudicated resulting in the impugned order. The Commissioner on examining the legal issue and decided the cases by the Honble Supreme Court and the Tribunal, held that no reversal is required.
3. The ld.A.R. for the Revenue explaining the grounds of appeal, submitted that the duty paid inputs on which credit have been availed were available in stock as on 21.01.2004 and were apparently used in the manufacture of exempted final product, after that date. As such, no credit on such inputs is available for the respondents, by applying the provisions of Rule 6 of Cenvat Credit Rules, 2002.
4. The ld.Counsel for the respondents, submitted that the credit on duty paid inputs have been availed correctly and at the time of availing credit, there is no bar of any nature. Thereafter, they have utilized the said credit to discharge duty on final product and on the date of availing exemption notification dated 21.01.2004, no credit was available in their books of accounts. He submits that there is no provisions in the said notification for reversal of proportionate credit when the assesee starts availing exemption. He further relied upon the case laws which were also mentioned in the impugned order.
5. We have heard both sides and perused the appeal records.
6. The original authority categorically recorded that the credit on inputs have been validly taken and have been validly utilised. When the respondent sought availing exemption under Notification 21 of 2004, there is no need for reversal of credit on any of the inputs. He recorded that when the credit was validly taken, no reversal can be ordered. We also note that reliance placed by the original authority on the decisions of the Honble Supreme Court in the case of Collector of Central Excise, Pune Vs.Dai Ichi Karkaria Ltd. : 1999 (112) ELT 353 (S.C.) as well as the Tribunals decision in the case of CCE Vs. Ashok Iron & Steel Fabricators : 2002 (140) ELT 277, are appropriate. We also note that similar ratio has been followed by the Tribunal in various other decided cases. Reference can be made to the decision of the Tribunal in the case of CCEx., Nagpur Vs. Suryalaxmi Cotton Mills : 2017 (345) ELT 310 (Tri.-Mumbai) and the decision of the Honble Karnataka High Court in the case of Commr. of Central Excise, Bangalore II Vs. Tafe Ltd. : 2012 (26) STR 160 (Kar.) and the decision of the Honble Gujarat High Court in the case of Commr. of Central Excise & Customs, Daman Vs. PSL Corrosion Control Services Ltd. : 2016 (339) ELT 406 (Guj.).
7. In view of the above settled position of law as discussed above, we find no merit in the present appeal. Accordingly, the same is dismissed.
(Dictated and pronounced in the open court)
Sd/ Sd/
(P. K. CHOUDHARY) (B.RAVICHANDRAN)
MEMBER (JUDICIAL) MEMBER (TECHNICAL)
mm
8
Ex.Appeal No.173/07