COMMISSIONER OF CENTRAL EXCISE Vs. TULSYAN NEC LTD.
LAWS(CE)-2015-1-14
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 19,2015

Appellant
VERSUS
Respondents

JUDGEMENT

R.Periasami, Member (T) - (1.)REVENUE filed appeal against the order of Commissioner (Appeals) dt. 31.7.2006.
(2.)THE brief facts of the case are that the respondents manufactured CTD bars and cleared the same on payment of Central Excise duty. They also undertook conversion of ingots into CTD bars on job work basis and cleared the same under Rule 57F (4) challan. They have availed input credit on furnace oil and oxygen as fuel. Show cause notice dt. 28.7.2005 was issued to the respondent demanding reversal of input credit availed on fuel used in the manufacture and clearance of exempted under Rule 6(2) of CCR. The adjudicating authority in order dt. 21.12.2005 confirmed the demand of Rs. 24,44,678/ - equivalent to 8% of value and also imposed equivalent penalty. On appeal by the appellants, the lower appellate authority in the impugned order set aside the order and allowed their appeal. The Revenue preferred the present appeal.
Heard both sides.

(3.)THE Ld. AR on behalf of the Revenue reiterates the finding of the adjudication order. He submits that respondents are required to reverse the proportionate credit on the fuel used in the exempted product. Since they have not maintained separate accounts for dutiable and exempted products and also they have not reversed proportionate amount, the adjudicating authority has rightly demanded 8% of value of clearance under Rule 6. Further, he submits that Commissioner (Appeals) has not followed the Larger Bench decision in the case of Kirloskar Oil Engines Ltd. v. CCE Pune : 1994 (73) ELT 835 (Tri.). He further submits that by virtue of retrospective amendment from September 2010, the respondents are required to reverse proportionate amount on the exempted goods. He relied on the following citations: - -
"(1) CCE Salem v. Burn Standard Co. Ltd. : 2013 (295) ELT 677 (Mad.)

(2) Hind Lamps Ltd. v. CCE Kanpur, 2010 (250) ELT 247 (Tri. -Del.)"

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