2010 (8) TMI 954 - AT - Central Excise

Summary

Issues involved: Disputed excess Cenvat Credit availed by the respondent u/s Notification No.35/2003-CE(NT) for grey fabrics cleared as final product.

Summary:
The Appellate Tribunal CESTAT AHMEDABAD disposed of three appeals filed by Revenue arising from the same impugned order by Commissioner (Appeals) regarding excess Cenvat Credit availed by the respondent for grey fabrics. The Revenue contended that clearing grey fabrics made them the final product, affecting the credit eligibility under the notification.

The respondents, engaged in Textile & Textile Articles manufacture, availed duty credits on input stock as per Notification No.35/2003-CE(NT). The Revenue argued that clearing grey fabrics made them the final product, impacting credit eligibility under the notification.

The Assistant Commissioner's order confirmed excess credit and imposed a penalty. The Commissioner (Appeals) allowed the appeals, stating that the grey fabrics should be considered inputs, not finished goods, for the manufacturer. The registration as a manufacturer and maintenance of records supported this view.

The Revenue's appeal reiterated previous grounds, but the Commissioner (Appeals) upheld the credit availed for grey fabrics as inputs for the final product. The Tribunal rejected Revenue's appeals, affirming the Commissioner's decision.

*(Pronounced in Court)*