REPRO INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule : Heard forthwith. The petitioners are engaged in the manufacture of (1) Packaged software falling under Chapter 85.23 of the First Schedule of the Central Excise Tariff Act, 1985 and liable to duty at 8% since 1st March, 2006; (2) stationery books such as letter pads, etc., falling under Heading 48.20 of the First Schedule to Central Excise Tariff Act, 1985 liable to duty at 16% and (3) printed books and other products of printing industry falling under Heading 4901 of the First Schedule to Central Excise Tariff Act, 1985 which are chargeable to nil rate of duty. The printed books are entirely exported by the petitioners.

(2.) It is the case of the petitioners that they have taken Cenvat credit of the duty paid on the inputs used in the manufacture of aforesaid products namely packaged software, stationery books and printed books. The said credit is utilized for payment of duty on packaged software and stationery books. Refund in cash is claimed for credit which cannot be so utilized, to the extent it is attributable to printed books exported by it. The Assistant Commissioner of Central Excise, respondent No. 2 has accepted the Letter of Undertaking furnished by the petitioners on 17th August, 2006 vide his letter dated 29th August, 2006 and allowed the petitioners to clear all the dutiable goods (packaged software) as also excisable goods attracting Nil rate of duties (printed books), to be cleared under the said Form UT-1.

(3.) Thereafter the Assistant Commissioner of Central Excise, Belapur-III Division, respondent No. 2 by his letter dated 9th April, 2007 directed the petitioners that they should clear only dutiable goods such as packaged software under the aforesaid bond i.e. UT-1 executed by them. The Assistant Commissioner directed that the petitioners cannot clear exempted goods or goods chargeable to nil rate of duty namely printed books under the above bond which was reiterated by letter dated 16th April, 2007. The respondent No. 2 directed that non-dutiable goods namely printed books cannot be cleared under Letter of Undertaking as there is no provision under Rule 19 of the Central Excise Rules, 2002 for such clearance. The respondent No. 2 by his letter of 18th May, 2007 directed the petitioners to pay an amount equal to 10% of the sale price of the exempted goods namely printed books exported by it based on Rule 6(3)(b) of the Cenvat Credit Rules, 2004 . The petitioners are aggrieved by the directions issued by the respondent No. 2 by his letter dated 9th April, 2007 and 15th April, 2007. The petitioners also challenge the direction by the respondent to the petitioner to pay 10% of sale price of printed books duly exported without payment of duty based on Rule 6(3)(b) of Cenvat Credit Rules, 2004.