Case Law Details
Commissioner of Central Excise Vs Cadbury India Ltd. (CESTAT Mumbai)
Conclusion: Milk crumb was marketable and hence assessee-cadbury was liable to pay excise duty for clearing goods without payment of duty as revenue neutrality could never be ground for not demanding the duty on the excisable goods in the form and manner they were being cleared by assessee.
Held: Assessee-company was manufacturer of excisable goods viz. cocoa preparations, sugar confectionary falling under Chapter heading 17 & 18 of the First Schedule to the Central Excise Tariff Act, 1985. During the visit by the Anti Evasion staff, it was observed that assessee was manufacturing excisable goods viz. Milk Crumb classifiable under heading 18062000 and chargeable to Central Excise duty @ 16% ad valorem. They had been clearing these goods since October 2006 without payment of duty in contravention of the provisions of Rules 4, 6 & 8 of the Central Excise Rules, 2002. After completion of investigation, a show cause notice was issued for demanding duty. It was held if the issue was revenue neutral, assessee-company would have paid the duty and taken the credit whatsoever, if the same was admissible. However, revenue neutrality could never be ground for not demanding the duty on the excisable goods in the form and manner they were being cleared by assessee. Accordingly, the goods in question viz. milk crumb was marketable and hence excisable.
FULL TEXT OF THE CESTAT JUDGEMENT
This appeal filed by the Revenue is directed against order-in-original No. 15/CEX/08 dated 30.09.2008 passed by Commissioner of Central Excise, Pune-I. In the impugned order, the Commissioner has held as follows:-
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