Sun Pharmaceutical Industries Ltd Vs C.C. E. & S.T. (CESTAT Ahmedabad)
Rule 3(7)(a) of Cenvat Credit Rules (CCR) applies only the duty has been paid at the concessional rate prescribed in Serial No. 2 of Notification No. 23/2003-CE dated 31/03/2003. The appellant has submitted a significant number invoices during hearing. A perusal of these invoices shows that benefit of Serial No. 2 Notification No. 23/2003-CE dated 31/03/2003 has not been availed while payment of duty. Serial No. 2 Notification No. 23/2003-CE dated 31/03/2003 prescribes that the duty shall be calculated at the normal rate for BCD/CVD and thereafter the total duty is reduced by 50%. A perusal of invoices produced by the appellant clearly shows that the duty has not been discharged in this manner. In the appeal memorandum also, the appellant has given a chart on page 90 and 91 as Exhibit „G‟. It has been specifically claimed in respect ofmany entries that benefit of Serial No. 2 Notification No. 23/2003-CE dated 31/03/2003 has not been availed. From the above it is apparent that the observation of Commissioner in the impugned order that duty has invariably been paid under Serial No. 2 Notification No. 23/2003-CE dated 31/03/2003 is prima facie incorrect.
5. In view of above, the matter needs to be reconsidered by the original adjudicating authority by examining all invoices individually. The provisions of Rule 3(7)(a) of Cenvat Credit Rules would be applicable only in cases where the duty has been paid taking benefit of Serial No. 2 Notification No. 23/2003-CE dated 31/03/2003
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
This appeal has been filed by M/s Sun Pharmaceuticals Industries Limited against denial of cenvat credit.
2. Learned Counsel pointed out that the appellants were procuring inputs from 100% EOU. The said goods had suffered excise duty as per Notification No. 23/2003-CE dated 31/03/2003. He pointed out that the cenvat credit which can be availed in respect of goods procured from 100% EOU is governed by the formula prescribed under Rule 3(7)(a) of Cenvat Credit Rules, 2004. According to the said Rule, the cenvat credit that can be availed is governed by the following formula:
