2008 (1) TMI 727 - AT - Central Excise

Summary

Issues:
- Appeal against order-in-appeal due to lack of evidence of duty payment on goods supplied.
- Conditions for availing deemed Cenvat credit under relevant notification.
- Disagreement on duty discharge under compounded levy scheme.
- Interpretation of deemed credit and necessity of duty paying document.
- Dispute on fixation of Annual Capacity Production (ACP).
- Consideration of penalties and irregular credit claims in specific invoices.

Analysis:
1. The appeal was filed against the order-in-appeal due to the absence of evidence of duty payment on goods supplied by specific manufacturers. The main contention was the lack of proof of duty payment, which is essential for availing Cenvat credit, even if it is deemed credit.

2. The conditions for availing deemed Cenvat credit under the relevant notification were disputed. The Authorized Representative argued that the recipient must ensure appropriate duty payment by the manufacturer to claim deemed credit.

3. The Advocate representing one of the respondents argued that duty liability was discharged under the compounded levy scheme, with duty paid on a fortnightly basis. The disagreement arose over the timing of duty payment and the sufficiency of the endorsement on invoices for claiming Cenvat credit.

4. The interpretation of deemed credit was crucial, with the Tribunal emphasizing that the nomenclature implies credit without a duty paying document. The focus was on whether goods were cleared under the relevant rule, with the responsibility on the revenue to recover duty if supplied without payment.

5. The issue of ACP fixation and pending proceedings before the Tribunal was highlighted, leading to the conclusion that penalties were unwarranted. Discrepancies in specific invoices regarding duty liability declaration were discussed, with the Commissioner's decision on time-bar and irregular credit claims being upheld.

6. Ultimately, the Tribunal found no merit in the revenue's appeals and dismissed them, emphasizing the importance of evidence of duty payment for availing credit and the responsibility of the revenue to pursue suppliers for unpaid duty.