CCE v. Lamicoat International (P) Ltd.

CENTRAL EXISE ACT, 1944

--Demand--Clandestine removal Findings of Tribunal contrary to the record of CCE----Where finding of Tribunal that CCE had recorded that assessee had made payment of Excise Duty which they had recovered from the customers was incorrect and run contrary to the recor and where assessee had availed the Cenvat credit on raw material in violation of rule 3(3)/3(4) of the Cenvat Credit Rules, 2002/2004 for the amount of excise duty they had collected from their customers, therefore matter was remanded back to Tribunal to decide afresh.--Assessee was engaged in production of Printed Laminated Plastic Film, Printed Laminated Plastic Film in pouch form, Metallized Polyester Film and Flexible Polyethylene Film. CCE after analyzing the manufacturing process recorded a finding that metallization/lamination did not change the primary nature of raw material being subjected to this process. There was no liability to pay any duty of excise on clearance of the said products in the form of rolls or bundles, therefore, assessee was not supposed to collect any amount from their customers as duty. CCE further held that assessee also availed Cenvat credit on Polyster/Polyethylene Films used for the purpose of metallization and lamination thereof, despite the fact that no duty was payable on the processed or end products. Cenvat credit availed was against the provisions of rule 3(3)/3(4) of Cenvat Credit Rules 2002/2004. Held: Tribunal held that CCE had recorded a finding that assessee had made payment of Excise Duty which they had recovered from the customers was incorrect and run contrary to the recor. Assessee had availed the Cenvat credit on raw material in violation of rule 3(3)/3(4) of the Cenvat Credit Rules, 2002/2004 for the amount of excise duty they had collected from their customers. CCE had confirmed the demand which was charged and collected by assessee as excise duty from their buyers under section 11D and interest thereon under section 11DD. Therefore, matter was remanded back to Tribunal to decide afresh