Custom, Excise & Service Tax Tribunal
M/S Emerson Network Power (India) Pvt. ... vs Commissioner Of Central Excise, ... on 7 March, 2014
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT NO. I Appeal No. E/2074/04-Mum (Arising out of Order-in-Original No. 24/KKS/2003-04 dated 25.3.2004 passed by the Commissioner of Central Excise, Mumbai-III). For approval and signature: Honble Shri P.R. Chandrasekharan, Member (Technical) Honble Shri Anil Choudhary, Member (Judicial) ======================================================
1. Whether Press Reporters may be allowed to see : No 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 : Yes 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?
====================================================== M/s Emerson Network Power (India) Pvt. Ltd. Appellant Vs. Commissioner of Central Excise, Mumbai-III Respondent Appearance:
Shri Gajendra Jain, Advocate for Appellant Dr. B.S. Meena, Addl. Commissioner (AR) for Respondent CORAM:
SHRI P.R. CHANDRASEKHARAN, MEMBER (TECHNICAL) SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) Date of Hearing: 07.03.2014 Date of Decision: 07.03.2014 ORDER NO.
Per: P.R. Chandrasekharan The appeal is directed against Order-in-Original No. 24/KKS/2003-04 dated 25.3.2004 passed by the Commissioner of Central Excise, Mumbai-III. Vide the impugned order, a duty demand of Rs.7,75,105/- has been confirmed against the appellant M/s Emerson Network Power (India) Pvt. Ltd., Thane.
2. The facts relevant briefly are as follows: -
(i) The appellant is a manufacturer of UPS System and Air Conditioning machines falling under Chapter 84.85 of the Central Excise Tariff. For manufacturing of these goods, they procure parts of payment of excise duty and these parts are normally used in the manufacture of UPS and Air Conditioning machines. Sometimes, the parts which have been procured on payment of duty on which credit has been taken has cleared as such to meet the warranty obligation and these parts are cleared free to the customers. On such clearance the appellant reversed the credit taken on the parts. The question is what should be the value on the duty liability on the parts should be discharged i.e whether the reversal of the credit taken or the appellant should discharge duty liability on the value of such goods cleared in terms of sub-rule 1(c) of Rule 57AB. The department was of the view that similar parts were cleared from the appellants warehouse for sale purpose and, therefore, value of such goods was available and the appellant should have discharged duty liability on such value and not by merely reversing the credit actually taken. On this basis, the impugned demand has been confirmed. Aggrieved of the same (Dictated and pronounced in Court) (Anil Choudhary) (P.R. Chandrasekharan) Member (Judicial) Member (Technical) Sinha 1