IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
(Arising out of Order-in-Appeal No. 18/2008 (M-IV) (D) dated 28.11.2008 passed by the Commissioner of Central Excise (Appeals), Chennai)
M/s. Solocare Medicals (P) Ltd.
CCE, Chennai IV
Shri N. Viswanathan, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
Honble Shri D.N. Panda, Judicial Member
Honble Shri Madhu Mohan Damodhar, Technical Member
Date of Hearing / Decision: 17.03.2017
FINAL ORDER No. 40510 / 2017
Per D.N. Panda
Learned counsel submits that the duty element paid on the input when sought to be set off against the ultimate liability on the finished goods, department denies the same on the ground that the input supplied was exempt from duty. It is further submission of the appellant that the Honble High Court of Madras in the case of Commissioner of Central Excise, Chennai Vs. CEGAT, Chennai as reported in 2006 (202) ELT 753 (Mad.) has held that in the scheme of MODVAT credit which is designed to mitigate double taxation, the raw material suffering duty should get exemption when it is incorporated into the final goods and the final goods suffers duty.
2. In view of the proposition of law stated by learned counsel as has been held in the above judgment of the Honble High Court of Madras, it is agreeable that the input duty paid if it has gone into the treasury, not disputed by Revenue, manufacturer-appellant cannot be denied credit thereof while that is set off against the final goods liable to duty, irrespective of the Revenues claim that the input was exempted from duty. Accordingly, appeal is allowed.
(Dictated and pronounced in open court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
Technical Member Judicial Member