Custom, Excise & Service Tax Tribunal
Trilok Ship Breakers Ltd vs Mumbai I on 3 August, 2016
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH AT MUMBAI
APPEAL NO: E/732/2011
[Arising out of Order-in-Appeal No: M-I/RKS/41/2011 dated 2nd February 2011 passed by the Commissioner of Central Excise (Appeals), Mumbai I.]
For approval and signature:
Honble Shri C J Mathew, Member (Technical)
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 CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
:
No
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
Trilok Ship Breakers Ltd
Appellant
Vs
Commissioner of Central Excise
Mumbai I
Respondent
Appearance:
Shri S. P. Sheth, Advocate for the appellant Shri H.M. Dixit, Asstt. Commissioner (AR) for the respondent CORAM:
Honble Shri C J Mathew, Member (Technical) Date of hearing: 03/08/2016 Date of decision: 03/08/2016 ORDER NO: ____________________________ Issue in dispute in present challenge to order-in-appeal no. M-I/RKS/41/2011 dated 2nd February 2011 of Commissioner of Central Excise (Appeals), Mumbai I is the entitlement to CENVAT credit of education cess paid on imports as this charge was not included in notification no. 96/2004-Cus dated 17th September 2004. Accordingly, an amount of ` 2,19,089/- was held as recoverable along with interest and penalty.
2. Heard Learned Counsel for appellant and Learned Authorized Representative. The former has drawn attention to circular no. 5/2005-Cus dated 31st January 2005 which states 2. . However, in the case of imports under DEPB Scheme the position is slightly different. As per the notifications governing imports under DEPB Scheme, the basic duty and additional duty are exempt subject to the condition that the duties leviable on the goods are debited from DEPB. In other words, in the case of DEPB Scheme, though the imports are governed by an exemption notification, the fact remains that in case of such imports the duty is debited from the DEPB scrip. Therefore, it has been decided that in the case of imports under DEPB Scheme, the Education Cess @ 2% would also be debited from the DEPB scrip. and circular no. 18/20006-Cus dated 5th June 2006 which has advised that 4.?As regards the issue raised as to whether the duty debited through DEPB, DFCE, Target Plus etc. schemes would be eligible for Cenvat benefit or drawback facility by the licence holder, it has been made clear in the Finance Ministers Budget Speech that full credit of the 4% special CVD will be allowed to manufacturers of excisable goods. Therefore, it is clarified that the 4% CVD duty debited in DEPB, DFCE, Target Plus etc. certificates may be allowed to be taken back as drawback (brand rate). It may be mentioned here that under the Foreign Trade Policy, additional customs duty (CVD) debited in DEPB scrips/ certificates issued under reward schemes is allowed to be taken as Cenvat/ drawback.
3. In view of the above, the demands do not sustain. The impugned order is set aside and appeal allowed.
(Pronounced in Court) (C J Mathew) Member (Technical) */as 3 2