In a major relief to M/s. Vedanta Ltd, the appellant, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed the rebate sanctioned on exported anode slime and that excise duty demand not is not sustainable.
During the period from February 2012 to March 2012, the appellant filed two rebate claims being the duty paid by them on the export of copper cathode, anode slime and selenium powder falling under chapter heading 74031100, 71129990 and 28049000 respectively. After due process the Assistant Commissioner, sanctioned the entire rebate claim.
It appeared to department that anode slime is unconditionally exempted in terms of Sl. No. 22 of the Notification No. 05/2006 dated 01.03.2006 (amended notification no..12/2012 dated 17.03.2012). The said notification exempts “waste and scrap of precious metal or metals clad with precious metals, arising in course of manufacture of goods falling under chapter 71”.
Show Cause Notice was issued to appellant proposing to recover the erroneously granted rebate along with interest. After due process of law, the original authority vide order impugned herein confirmed the demand of Rs. 35,34,86,306/- along with interest holding that the rebate has been sanctioned erroneously. Aggrieved the appellant is before the Tribunal.
The counsel Akshit Malhotra appeared and argued for the appellant. It was submitted that the Central Board of Excise and Customs (CBEC) vide Circular No. 71/04/2012-CX-1 dated 14.07.2015 clarified that anode slime is dutiable product and is not eligible for the exemption of the notification. It is submitted by the appellant that the duty paid by appellant on exported anode slime is proper and therefore the demand confirmed by the adjudicating authority to recover the sanctioned rebate cannot be sustained and prayed that the same may be set aside.
Authorized Representative, Ambe appeared for the department.
A Two-Member Becnch comprising Vasa Seshagiri Rao, Technical Member and CS Sulekha Beevi, Judicial Member observed that “From the facts narrated above, it can be seen that the Board vide Circular dated 14.07.2015 has clarified that duty is payable on anode slime. Being so, the rebate sanctioned in regard to anode slime exported is legal and proper. The demand confirmed by the adjudicating authority cannot sustain and requires to be set aside, which we hereby do.”
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