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Prakash Cotton Mills Pvt. Ltd V/S Commissioner of Central Excise, Mumbai-IV


Company & Directors' Information:- THE COTTON CORPORATION OF INDIA LIMITED [Active] CIN = U51490MH1970GOI014733

Company & Directors' Information:- J. K. COTTON LIMITED [Active] CIN = U17111UP1924PLC000275

Company & Directors' Information:- P A S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111TN2005PTC058104

Company & Directors' Information:- V R A COTTON MILLS PRIVATE LIMITED [Active] CIN = U15311PB1997PTC020061

Company & Directors' Information:- PRAKASH COTTON MILLS PRIVATE LIMITED [Active] CIN = U99999MH1948PTC006219

Company & Directors' Information:- P D COTTON PRIVATE LIMITED [Active] CIN = U52321GJ2007PTC051857

Company & Directors' Information:- C A V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1987PTC002014

Company & Directors' Information:- R. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2010PTC061139

Company & Directors' Information:- V K S M COTTON MILLS LIMITED [Active] CIN = U17111TZ1998PLC008682

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Active] CIN = U17120MH1994PTC156054

Company & Directors' Information:- P K COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111DL2004PTC130281

Company & Directors' Information:- P. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2007PTC050747

Company & Directors' Information:- B V COTTON PRIVATE LIMITED [Active] CIN = U17111GJ2004PTC044704

Company & Directors' Information:- S K COTTON PRIVATE LIMITED [Active] CIN = U17110GJ2006PTC047511

Company & Directors' Information:- S R COTTON PRIVATE LIMITED [Active] CIN = U17120KA2013PTC071881

Company & Directors' Information:- CENTRAL COTTON MILLS LTD [Strike Off] CIN = U17118WB1956PLC022864

Company & Directors' Information:- S D S COTTON PVT LTD [Active] CIN = U17115PB1991PTC011007

Company & Directors' Information:- K P G COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1993PTC004509

Company & Directors' Information:- D B V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1982PTC001145

Company & Directors' Information:- P A COTTON PVT LTD [Active] CIN = U74999WB1992PTC055525

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Not available for efiling] CIN = U17115PB1994PTC014981

Company & Directors' Information:- S S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115PB1997PTC019918

Company & Directors' Information:- K S COTTON PRIVATE LIMITED [Active] CIN = U17299WB2003PTC096994

Company & Directors' Information:- J R COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TN1996PTC034302

Company & Directors' Information:- D C H COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1997PTC008130

Company & Directors' Information:- B D COTTON PRIVATE LIMITED [Active] CIN = U51909GJ1978PTC003234

Company & Directors' Information:- L D COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17291MH2014PTC256832

Company & Directors' Information:- A D COTTON MILLS PVT LTD [Active] CIN = U99999MH1970PTC014837

Company & Directors' Information:- G K COTTON PVT LTD [Active] CIN = U00309BR1982PTC001698

Company & Directors' Information:- PRAKASH MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1955PTC000155

Company & Directors' Information:- R R COTTON PRIVATE LIMITED [Active] CIN = U17111DL1998PTC094459

Company & Directors' Information:- C R COTTON INDIA PRIVATE LIMITED [Active] CIN = U17299DL2006PTC145903

Company & Directors' Information:- V P K COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ2000PTC009530

Company & Directors' Information:- PRAKASH COTTON COMPANY LIMITED [Not available for efiling] CIN = U99999MH1947PLC005927

    Appeal No. E/1354/06 (Arising out of Order-in-Appeal No. BR/19/M-IV/06 dt. 14.2.2006 passed by the Commissioner (Appeals) Central Excise, Mumbai-I)

    Decided On, 19 May 2017

    At, Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Mumbai

    By, THE HONORABLE JUSTICE: RAMESH NAIR
    By, MEMBER

    For Petitioner: Rajesh Ostwal, Advocate And For Respondents: N.N. Prabhudesai, Supdt. (A.R.)



Judgment Text


1. The appellant are engaged in the manufacture of excisable goods falling under Chapters 52, 54 & 55 of Central Excise Tariff Act, 1985. They are availing modvat credit of duty on capital goods since 1994. During the period 1st April, 2004 to 8th July 2004, they cleared scrap of machinery and machinery parts without payment of duty. The case of the department is that the removal of scrap capital goods is liable for payment of duty in terms of Rule 3(4) of the Cenvat Credit Rules, 2002.

2. Shri Rajesh Ostwal, Ld. Counsel appearing on behalf of the appellant submits that the very same issue, in the case of appellant, had come up before this Tribunal and this Tribunal vide order No. A/94274/16/SMB dt. 4.11.2016 held that in case of clearance of used parts/capital goods, Rule 3(4) is not applicable.

3. Shri N.N. Prabhudesai, Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He placed reliance on the following judgements:

"(i) Collector of Customs, Madras and Others v. D. Bhoormull : 1983 (13) E.L.T. 1546 (S.C.)

(ii) Phoenix Mills Ltd. v. Union of India : 2004 (168) E.L.T. 310 (Bom.)

(iii) GNFC Ltd. v. Union of India 2007 (214) E.L.T. 18 (Guj.)"

4. I have carefully considered the submissions made by both sides and perused the records. I find that the same issue, in the appellant's own case, has been decided by this Tribunal vide order dt. 4.11.2016. The relevant finding of the said order is reproduced below:

"4. I have carefully considered the submissions made by both the sides, I find that the demand was raised by invoking Rule 3(4) of Cenvat Credit Rules, 2002 which reads as follows:

RULE 3(4) CENVAT Credit-

When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 7. From the plain reading of the above Rule, it is clear that the duty is required to be paid only if the capital goods is removed as such. In the present case, it is undisputed that the worn out parts of the capital goods were cleared, therefore in case of used parts/capital goods Rule 3(4) is not applicable. The judgment cited by the Ld. Counsel support their case. The impugned order is set aside. The appeal is allowed."
In view of the above decision, the issue is

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no longer res integra. As regard the judgment relied upon by the Ld. AR, those judgments are neither relevant in the present case nor the facts of those case similar to the facts of this case. As per my above discussion the impugned order is set aside. The appeal is allowed.
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