The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Kolkata Bench comprising PK Choudhary, Judicial Member and K Anpazhakan, Technical Member allowed excise duty exemption on the ground of payment of duty for iron scrap paid by utilizing CENVAT Credit account and the refund through Personal ledger Account (PLA).
The Appellant, M/s. Cement Manufacturing Company Limited, was availing the benefit of Notification No.33/99-CE dated 08.07.1999 (as amended). The Appellant had generated iron-scrap in the course of fabrication of plant and machinery during the period and cleared the same on payment of duty and claimed refund during this material period and they were granted refund.
Further, the iron-scrap was generated during the process of fabrication and the plant and machinery was manufactured by the Appellant. Therefore, they were not eligible for the refund in terms of the conditions of the said Notification.
The exemption under the said Notification is not available to any excisable commodity which is not manufactured in the units located in the area covered under the said Notification. The iron-scrap generated in the factory of the Appellant was not their manufactured product. Accordingly, the Department initiated proceedings for recovery of the amount refunded
The Counsel for the appellant submitted that the duty was not required to be paid on waste and scrap in view of the Notification No.89/95-CE dated 18.05.95, but they paid duty from CENVAT Account, since they availed Credit on the iron and steel used in the manufacture of capital goods.
The contention of the Authorized Representative appearing for the Department is that the Appellant are availing the benefit of Notification No.33/99-CE (as amended), and in terms of the said Notification, the exemption is not available to any excisable commodity which is not manufactured in such unit.
The Two-Member Bench noted that “we hold that the payment of duty for the scrap has been correctly paid by utilizing the CENVAT Credit account and the refund of duty paid through PLA on the cement has been correctly claimed by the Appellant as per Notification No.33/99-CE dated 08.07.1999 and hence the refund sanctioned was in order.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
