2010 (5) TMI 789 - AT - Central Excise

Summary

Issues:
1. Interpretation of Section 73 of the Finance Act, 2010 regarding Cenvat credit on inputs for exempted goods.

Analysis:
The judgment by the Appellate Tribunal CESTAT NEW DELHI involved a dispute where both sides suggested that resolving the issue in line with Section 73 of the Finance Act, 2010 would be appropriate. The appellant's counsel argued that the case falls under sub-section (4) of Section 73 and should be governed by sub-section (2) of the same section. The appellant had already reversed the credit, but to proceed with the examination process, the matter needed to be referred back to the Adjudicating Authority to satisfy the requirements of the Finance Act, 2010.

Considering the submissions, the Tribunal decided to dispense with the pre-deposit requirement and dispose of the appeal in light of the retrospective application of law by Section 73 of the Finance Act, 2010. The Tribunal emphasized the importance of examining the admissibility of Cenvat credit on inputs used for manufacturing exempted goods afresh. It was determined that if the appellant submits an application under sub-sections (2) and (3) of the Finance Act, 2010 with all necessary details, the Adjudicating Authority should re-examine the matter and issue an appropriate order, taking into account the provisions of Section 73 of the Finance Act, 2010. The Tribunal aimed to ensure a fair opportunity for the appellant by sending the matter back to the Adjudicating Authority for a fresh examination and a decision in line with the law enacted by Section 73 of the Finance Act, 2010.

As a result, the appeal was disposed of by setting aside the impugned order, with the Tribunal emphasizing the need for the Adjudicating Authority to consider the application from the appellant and pass an appropriate order in accordance with the provisions of the Finance Act, 2010.