Benefit for Exemption from Excise Duty not Applicable to Goods in which CENVAT Credit of Duty on Inputs Already Taken under Provisions of CENVAT Credit Rules: CESTAT [Read Order]
![Benefit for Exemption from Excise Duty not Applicable to Goods in which CENVAT Credit of Duty on Inputs Already Taken under Provisions of CENVAT Credit Rules: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/07/Benefit-for-Exemption-from-Excise-Duty-Exemption-Excise-Duty-Benefit-for-Exemption-from-Excise-Duty-not-Applicable-to-Goods-CENVAT-Credit-CENVAT-Credit-Rules-CESTAT-Taxscan.jpg "Benefit for Exemption from Excise Duty not Applicable to Goods in which CENVAT Credit of Duty on Inputs Already Taken under Provisions of CENVAT Credit Rules: CESTAT [Read Order]")
The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the benefit for exemption from excise duty not applicable to goods in respect of which the CENVAT credit of duty on inputs was already taken under the provisions of CENVAT credit rules. Natraj Interwoven Labels & Mfg. Co, the respondent assessee imported silk fabrics and availed...
The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the benefit for exemption from excise duty not applicable to goods in respect of which the CENVAT credit of duty on inputs was already taken under the provisions of CENVAT credit rules.
Natraj Interwoven Labels & Mfg. Co, the respondent assessee imported silk fabrics and availed exemption as per Notification and the Commissioner held that no CENVAT Credit of duty paid on inputs shall be taken by the importer.
The revenue appealed against the order passed by the Commissioner (Appeals) for quashing the order passed by the original authority.
Ananda Lakshmi Ganeshram, the counsel for the revenue contended that the assessee was a trader and had not fulfilled the condition of the notification that CENVAT Credit on inputs should not be availed by the importer.
Further submitted that the wording of the notification was that the benefit did not apply to goods in respect of which credit of duty on inputs had been taken under the provisions of the CENVAT Credit Rules, 2004.
S. Yogalakshmi, the counsel for the assessee contended that the assessee being a trader was not in a position to avail CENVAT Credit of duty paid on inputs. However, the goods imported were eligible for exemption under exemptions notification.
The Bench observed that as per the notification is that the importer should not have availed the CENVAT Credit on the inputs and in the present case, it was an admitted position that the respondent has not availed any such credit and the reason for denying the benefit of the notification was that in the case of the assessee, no such credit was admissible being a trader.
The two-member bench comprising Sulekha Beevi C.S (Judicial) and Vasa Seshagiri Rao(Technical) upheld the order passed by the Commissioner (Appeals) while dismissing the appeal filed by the department.
To Read the full text of the Order CLICK HERE
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