Karnataka High Court
The Commissioner Of Central Excise vs M/S Gokaldas Intimate Wear on 11 April, 2011
Bench: N.Kumar, Ravi Malimath
%<=S;RavE$ha:2£<ar}, ms we %~EEG§~f cam" SF %<AE»?:§'«£ATAKA AT BANGALQRQ mrm THIS THE 11"' my 0? fi§R§L 23::
THE HQPEBLE MR3 ."E{}S"§"I€'j1E»AA9E:\§>.'§<U§i§;s':'=;E<~"<iv - :'_~ ' Aim V . .« % % "ma HQWBLE MR. :w5TI'<:§ R;5a'{!;f.V.§\?¥':i'%.LEN:.fl{'vT§:i§ CEA.NC}.1C'I9 {l'¥.E'2.(:1{39 % ' ' BETWEEN:
The COf3";Vf'fiiSSEC5F'EFjIT of'3Ce:i;t'r'aE_ EExc:i--<se, Bangaiorei IIC<}mmijs5io:2e'r*-.3t'e~,T ' ' Cerztraf Revenue E3ujid..i}".g"~.__ "~ ;>aB,Na£5400;%.;Q%us;en's r~::9a«:£,_;.;~ fiangaicre 5» §6'O._OGi .7' ...AE~">PELLANT ("B~A\,5 Sri B:'Pra':':} 9d , :5-§d§/'bf5c;at@} .........-.............w §v§,'s.{§«:;__E<af_<;'=a<; intimate Wear €40,123; .:fid;us%ria£ Subrazh i3' '=.;2V'""dAPhase,fT'L;mE<ur R036, ' E§2?2ng'1a*E..r,;:*e =- 56$ $22.
..=RES?QNBENY Aévacam) >§<>§<fi§=fi>sf=€>%< Thig CER flied eméer Sectmn 35$ 3? 'aha Cgniraé Excise Act, 1§4é ayising mat of order éateé 2fi;,0$;:",2:£3G§ sasgeci in Fmai Qrder New 135/206?, graying ta de;z:.:E<j'e:>.._t§?:e substantiai questicn 0f iaw stated tfiareing sei:~«.~2?afs*:r;i;e?L- '§:iiir.'~.%; erder passed in the CESTAT, South Zane §enc.E:;---- Bah-g§a£oJr*es.T' in Finafi Order ¥\§§.135/2009 datad 24/Q2/_ZQ»C§9,.§n.f AQ;:ea%. K E'~«io.E/?4?'/206? and restere th.¢2~~» .Grde;'~invf}1fiI§&a¥_' .§§é;:=7_ " 118/2907 dated 23.0?.2QO?I This (LEA coming w<'j:'zi~.._ fQr -._h'e:aVr§n.g§'V'A' N.K%._.FE'v'iAR 3,, deiivered the foE§:m§£m»g:~ _;;;i;D£iA?'4EF'TA:3;1;:«..V jba This appea! gs p:fefa%r}e~d 'ag§i_:'i§i:v.':fi%.#y,'*é'rder passed by me T1j§'b:J"r1a!;?};a;i*1i§i:§%;:"%1e'Ea:§ tha't"t'i*.'e'éssessee Ea fiat liable ts rever$é<_2::he cesfivéifi.:Crs§Vci?§.1; 'i;j: hrespect cf the inputg which were puréhaseé.§3:"i<5afi_"%:'a. ' Oi38.2904; the day from which an-féizeg"-r;p:,io§: w'és'~--g--ra'nted, from payment of excise duty in mggfgecvi-§*§' .f§%n.ai%"-g;r@ducts* The agsessee are the manufactmrerg af 2*ie;a c_§;mafie garments. They avaiied cémvat zcredét and _ é:§ear$d the finished Qraéuats an paymemi cf duty, A rmtifécetéors came :0 fie isezsed or: ee.0e,2eo4 gre;f§i§r}§g._V exemption in respect of the firaaé eredLrr.§E'$"--«p..'_eri;§' censequerztty, frem 01.082004, thegjey frztm~~xr~}:i*:.ie"i'::::%:E%1Ae eetificetioe came inte force, the asseese'eevérae..ee.i:"'es€ti':r!ed~~:.:1ef is cenvat credit. However; 33 are assessee held inputs arrd semE____L:f'i'n.§sh.ed reistock. The revenue ereceedecivéx;re§esAi:L_ti%::evLx:é"::.é3ve.§pse»e invoking the proviso: of Sect_ror3_ 1:§A~~»:..g{r1d._gfiiemand for irregularly a§.va}»:¢1d:.:fl»r§renxr'§t_«_€ T; e5d""'i"hterest thereon, Penaity was _éi%.s3::€) (:3rieina| Authority held that the e'sseseeVe'W%'§;-.:f:j:abi'e~b.£§v----.rex:-erse the credit. In appeal, the Comn*:i"'ss_idn.erV"0_f 'zfip-péeiésw upheld the said order, it is é_agaiV_r::?:gi: the saicV1§'4::--rcje_r, the aesessee preferred an appeai to V__the"Tgiii;r;;:';.ai«_.,A:V*""T_he Trébunai heid that fir: respect ef semi and raw meteriais hetd in stock prier to I_G1.Gu$§2{3VQ4h, the assessee is entitied to the benefit of VA :~fjceri=q'e: credit are is not urrder any ebligatien to reverse the (§§)i7f?€ said fins! firofiusé hag !3a=e:j:V.. ._i ._ exempted abrsafuireiy Lffidfif se»:tian....;€«"fi§ " of the Ad', and after deducting'-4':_::*hs3AT.V: gait? amount from CEM/AT credit; if aégy, :_ iy<i§%2g}3..i}:aA..'fvié'='-- credit, the baTia{7ce,é"*.._i?~-- any_' ..".%, :éi.£fI'i!" remaining shall am} s=?ya:£.
aliowed tz:> be gzzssgéa re; paymentyfif duty on product whéther .. C:'ea}9é<:f: home :_:c§§é'fg§§;a3pfr_'0:z G?" for cjf-«.s:.eryitf;e':«'z:a>§_ an any output ""V..<3;ér;§%r£;;Q, whéi'h€f:::PF0fv'ided in India or e ;':pQf1'*ed'.< .'f' ~ . ' 58, LA T7hefefo.a'*e,'*it«E'é clear from the aforesaid Ruie .&"th;a;ii'fi E1 5G;,03'.&_2O0?;"t"h'é assessee was emitted to beraefit of AL'tif:&z+.?-<:émfa*:;u{;:9éd§£i.~in respect of inputs contained in the work §nA"-;3rog___:*e.éfs.i'.~*Land semi finished prefiucts. The said "anmend.rnént Es prospective in nature. It cemes mm effect fEf;i{}'§*S'"%::Qf1§\,? 81.33.2637'. In the Engtant case, the geréeé Es
-»v.E2%§'fierE@r ta 81.83.2303 which has :30 aggiécaiians