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Surya Food & Agro Ltd V/S Commissioner of Customs & Central Excise, Lucknow


Company & Directors' Information:- SURYA FOOD AND AGRO LIMITED [Active] CIN = U15201UP1992PLC014919

Company & Directors' Information:- R T AGRO PRIVATE LIMITED [Active] CIN = U15400MH1988PTC122934

Company & Directors' Information:- SURYA INDIA LIMITED [Active] CIN = L74899DL1985PLC019991

Company & Directors' Information:- K F AGRO PRIVATE LIMITED [Active] CIN = U01132PB1998PTC021937

Company & Directors' Information:- S K K AGRO PRIVATE LIMITED [Active] CIN = U01110DL2007PTC163157

Company & Directors' Information:- B R V AGRO PRIVATE LIMITED [Strike Off] CIN = U15139UP2007PTC034299

Company & Directors' Information:- B. P AGRO INDIA PRIVATE LIMITED [Active] CIN = U15132DL2019PTC357421

Company & Directors' Information:- M Y AGRO PRIVATE LIMITED [Active] CIN = U51221DL2011PTC215043

Company & Directors' Information:- C F L AGRO PRIVATE LIMITED [Strike Off] CIN = U01409KA2001PTC028797

Company & Directors' Information:- L K AGRO PRIVATE LIMITED [Active] CIN = U15140MH1998PTC115185

Company & Directors' Information:- H D AGRO PRIVATE LIMITED [Strike Off] CIN = U01111MH1996PTC097451

Company & Directors' Information:- P C L AGRO PRIVATE LIMITED [Active] CIN = U74899DL1992PTC049537

Company & Directors' Information:- A S AGRO PRIVATE LIMITED [Active] CIN = U74899DL1989PTC040467

Company & Directors' Information:- S N N AGRO PRIVATE LIMITED [Active] CIN = U01114JH2016PTC008919

Company & Directors' Information:- D. J. AGRO PRIVATE LIMITED [Strike Off] CIN = U01112DL1994PTC057414

Company & Directors' Information:- S G AGRO PRIVATE LIMITED [Active] CIN = U01122KA1995PTC017091

Company & Directors' Information:- B A B AGRO LTD [Strike Off] CIN = U24231MH1993PLC073114

Company & Directors' Information:- SURYA T V LIMITED [Strike Off] CIN = U74899DL2000PLC104798

Company & Directors' Information:- B A B AGRO LTD [Active] CIN = U24233WB1987PLC043179

Company & Directors' Information:- K. K. AGRO PVT. LTD. [Strike Off] CIN = U51420WB1987PTC042090

Company & Directors' Information:- A Q AGRO PVT LTD [Under Process of Striking Off] CIN = U51209WB2006PTC109930

Company & Directors' Information:- T & T AGRO PRIVATE LIMITED [Active] CIN = U01132WB1999PTC090368

Company & Directors' Information:- R E I AGRO LTD. [Active] CIN = U01111WB1994PLC065082

Company & Directors' Information:- P & S AGRO INDIA LIMITED [Strike Off] CIN = U01403MH2011PLC214782

Company & Directors' Information:- D N D AGRO (INDIA) LIMITED [Active] CIN = U01403PN2011PLC139235

Company & Directors' Information:- L C A AGRO PRIVATE LIMITED [Strike Off] CIN = U01112UP2005PTC029657

Company & Directors' Information:- G D AGRO PRIVATE LIMITED [Strike Off] CIN = U24122UP1993PTC015164

Company & Directors' Information:- J & M AGRO FOOD PRIVATE LIMITED [Active] CIN = U55100BR2013PTC021049

Company & Directors' Information:- G T AGRO INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC142577

Company & Directors' Information:- F AND K AGRO PVT LTD [Strike Off] CIN = U29248PN1980PTC022759

Company & Directors' Information:- A N AGRO PRIVATE LIMITED [Strike Off] CIN = U01119DL1996PTC081855

Company & Directors' Information:- V R L AGRO PRIVATE LIMITED [Strike Off] CIN = U85110KA1999PTC024717

Company & Directors' Information:- P. S. R. AGRO PRIVATE LIMITED [Active] CIN = U24248UP1974PTC004017

Company & Directors' Information:- O N AGRO PRIVATE LIMITED [Active] CIN = U74899DL1988PTC031986

Company & Directors' Information:- Y K AGRO PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74999DL2013PTC250398

Company & Directors' Information:- N P M AGRO PRIVATE LIMITED [Strike Off] CIN = U15494DL2011PTC214942

Company & Directors' Information:- D A AGRO PRIVATE LIMITED [Active] CIN = U74900DL2015PTC288168

Company & Directors' Information:- D. B. AGRO PRIVATE LIMITED [Active] CIN = U01100MP2010PTC025035

    Appeal No. E/1319/2012-EX[DB] (Arising out of Order-in-Appeal No. 83-CE/LKO/2012 dated 27/02/2012 passed by Commissioner (Appeals), Customs, Central Excise & Service Tax, Lucknow) and Final Order No. 71234/2018

    Decided On, 21 June 2018

    At, Customs Excise Service Tax Appellate Tribunal Regional Bench Allahabad

    By, THE HONORABLE JUSTICE: ARCHANA WADHWA
    By, MEMBER AND THE HONORABLE JUSTICE: ANIL G. SHAKKARWAR
    By, MEMBER

    For Petitioner: Stuti Saggi, Advocate And For Respondents: Pawan Kumar Singh, Supdt. AR



Judgment Text


1. After hearing both the sides, we note that the appellant was engaged in the manufacture of edible biscuits, and were availing benefit of Cenvat credit of duty paid on various raw materials. The biscuits manufactured by the appellant carried the RSP of less than Rs. 100/- per Kg. as also less than Rs. 50/- per Kg. Prior to 01/03/2007 both types of biscuits were dutiable and as such the appellants were availing the Cenvat credit of duty paid on common raw materials, which were being utilized for payment of duty on both types of biscuits and a common record was being maintained by them.

2. With effect from 01/03/2007 biscuits having RSP less than of Rs. 50/- per Kg. became exempted, though the biscuits of RSP more than of Rs. 50/- continued to remain dutiable. As the appellant had availed Cenvat credit of duty on the raw materials which have gone into manufacture of exempted biscuits, Revenue was of the view that such exempted biscuits were required to pay an amount of 10% of the value of the same, in terms of provisions of Rule 6(3)(iii). Accordingly, demands were raised against them proposing confirmation of amount of Rs. 12,00,476/-.

3. During the adjudication, appellant took a categorical stand that the said biscuits became exempted with effect from 01/03/2007; that they have already reversed proportionate credit of Rs. 2,30,130/- on 31/03/2007. In such a scenario, they contended that it has to be held as if no credit was ever availed by them. However, the Lower Authorities did not agree with the above contention of the appellant and the show cause notice issued to them culminated into an order passed by the Original Adjudicating Authority and upheld by Commissioner (Appeals). Hence the present appeal.

4. After hearing both the sides, we find that there is no dispute about the reversal of Cenvat credit relatable to inputs which stand utilized in the manufacture of exempted final products. It stands held in number of decisions of the higher courts that such reversal of credit would lead to a situation as if no credit was ever availed. The Lower Authorities have observed that the said fact would not make difference inasmuch as the appellant have neither maintained a separate account nor paid 10% of the value of the goods.

5. At this stage, we note that the Hon'ble Supreme Court decision in the case of Chandrapur Magnet Wires Pvt. Ltd. Vs. Collector of Central Excise, Nagpur : 1996 (81) E.L.T. 3 (SC) held that reversal of credit leads to a situation as if no credit was ever availed. The said decision stands followed in number of subsequent judgment of the Tribunal. One such reference can be made to Tribunal decisions in the case of Commissioner of Central Excise & Service Tax, Udaipur Vs. Secure Meters Ltd : 2017 (354) E.L.T. 1

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46 (Tr.-Del.). 6. Inasmuch as the appellant have admittedly reversed the credit, we find no reasons to uphold the impugned orders directing them to pay 10% of the value of the exempted product. Accordingly, the impugned order is set aside and appeal is allowed with consequential relief to the appellant.
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