DIVYA PHARMA Vs. COMMISSIONER OF CENTRAL EXCISE, DAMAN

JUDGEMENT

(1.) AFTER dispensing with the condition of pre -deposit of duty and penalty, I propose to dispose off the appeal itself as a short issue is involved.

(2.) THE appellant is engaged in manufacture of Cosmetics falling under Chapter 33 of CETA, 1985. During the period 12 -10 -01 to 25 -11 -01, they cleared one of their final product Margo Natural All Purpose Cream to M/s. Calcutta Chemical Co. Ltd. on payment of Basic Excise Duty (BED) as also on payment of Special Excise Duty (SED). The said goods were rejected by their buyers and returned to the appellant for re -labelling. The appellants took the credit of duty originally paid by them at the time of clearance of the goods. The dispute in the present appeal relates to availing of credit of SED on goods, at the time of clearance to the extent of Rs. 7,58,560/ -.

(3.) IT may be clarified that there is no dispute about return of the rejected goods and the BED originally paid by the appellant stand allowed to them as credit, without any objection by the Revenue. The objection about credit of SED is on the ground that at the time of receipt of rejected goods, SED was not leviable on the same, having become exempted vide Notification No. 18/2002, dated 1 -3 -02. As such, lower authorities have denied the credit of SED on the ground that when the goods were returned in November, 2002, they were not subject to levy of SED.