2009 (2) TMI 657 - AT - Central Excise

Summary

The appellate tribunal CESTAT, Ahmedabad, consisting of Ms. Archana Wadhwa and Shri B.S.V. Murthy, heard an appeal regarding the entitlement of the appellants to the benefit of Notification No. 30/2004-C.E. The key issue was whether the appellants could claim this benefit while also availing themselves of another exemption under Notification No. 29/2004-C.E. The Commissioner vacated show cause notices issued to the appellant, citing a Board's Circular and precedent decisions, including the case of Forbes Gokak Mills Ltd. v. Commissioner of Central Excise, Belgaum. The tribunal noted that the issue was previously addressed in various appeals and upheld by the Gujarat Minster of State for Home Affairs. The Board's Circular No. 858/16/2007-CX clarified that even if credit is taken and then reversed before utilization, it would be considered as not taking credit, thus entitling the appellant to the benefit of the notification. Ultimately, the tribunal found no fault in the Commissioner's decision and rejected the Revenue's appeal. The judgement was pronounced in court by the tribunal.