Parul Chemicals Ltd. Vs. Commissioner of Cen. Excise

Parul Chemicals Ltd. vs Commissioner of Cen. Excise

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai Decided Apr 10, 2003

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Citation: sooperkanoon.com/30613
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Judge: J Balasundaram
Decided On: Apr 10, 2003
Subject: Service Tax

Case Summary

AI-generated summary - not the official court judgment text.

Service Tax

Key legal issue: Service Tax

Parties & Advocates

Appellant / Petitioner

Parul Chemicals Ltd.

Respondent

Commissioner of Cen. Excise

Excerpt

1. after hearing both sides for sometime on the application for waiver of pre-deposit of duty of rs. 23,511/- and penalty of rs. 2500/-, i found that it is possible to decide the appeal itself at this stage.hence, after waiving the pre-deposit of duty and penalty, i proceed to hear and dispose of the appeal itself with the consent of both sides, as the issue indispute has been settled by the precedent orders of the tribunal.2. the issue in dispute is as to what is the rate of duty at which inputs can be cleared as such after amendment to cenvat rules, according to which appropriate duty is to be paid. according to the appellants, the credit is to be reversed n clearance prior to 1.3.01 at the rate paid by the original manufacturer, while according to the revenue it is the rate prevalent at the date of clearance of the goods.3. i find that the issue has been settled by the tribunal in its decision in the case of maruti udyog ltd. v. cce, delhi [2002(53) rlt 395] in favour of the assessees. according to this decision which was followed by the larger bench in the case of cce v. asia brown boveri ltd. [2000(39) rlt 575], the rate of duty payable on clearance of inputs is the rate at which the original manufacturer paid. following the ratio of the above order, i set aside the impugned order as allow the appeal.

Full Judgment

1. After hearing both sides for sometime on the application for waiver of pre-deposit of duty of Rs. 23,511/- and penalty of Rs. 2500/-, I found that it is possible to decide the appeal itself at this stage.

Hence, after waiving the pre-deposit of duty and penalty, I proceed to hear and dispose of the appeal itself with the consent of both sides, as the issue indispute has been settled by the precedent orders of the Tribunal.

2. The issue in dispute is as to what is the rate of duty at which inputs can be cleared as such after amendment to Cenvat Rules, according to which appropriate duty is to be paid. According to the appellants, the credit is to be reversed n clearance prior to 1.3.01 at the rate paid by the original manufacturer, while according to the Revenue it is the rate prevalent at the date of clearance of the goods.

3. I find that the issue has been settled by the Tribunal in its decision in the case of Maruti Udyog Ltd. v. CCE, Delhi [2002(53) RLT 395] in favour of the assessees. According to this decision which was followed by the Larger Bench in the case of CCE v. Asia Brown Boveri Ltd. [2000(39) RLT 575], the rate of duty payable on clearance of inputs is the rate at which the original manufacturer paid. Following the ratio of the above order, I set aside the impugned order as allow the appeal.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Mumb... Same Parties Parul Chemicals Ltd. vs Commissioner of Cen. Excise Same Subject Service Tax Same Judge J Balasundaram