2009 (3) TMI 693 - AT - Central Excise

Cenvat/Modvat - denial on the ground that the supplier of the inputs should not have paid the duty and should have availed the benefit of exemption N/N. 44/2001 dated 26-6-2001 inasmuch as the appellants have invalidated advance licenses issued to them in favor of supplier of the raw materials - Held that - the Notification is a conditional Notification and it was the option of the supplier to avail or not to avail the same. In any case the assessments have already been made at the supplier s end accepting duty payment by him and cannot be re-opened at the appellant s end. Admittedly duty stands paid by the suppliers in which case the appellants would be entitled to avail the credit on the same - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT, Ahmedabad ruled in favor of the appellant, allowing them to avail Modvat credit as duty was already paid by the suppliers of inputs. The benefit of exemption notification was the supplier's choice and assessments at the supplier's end cannot be reopened at the appellant's end. The impugned order was set aside and the appeal was allowed with consequential relief to the appellants.