2007 (2) TMI 674 - AT - Central Excise

Summary

Issues involved: Denial of Modvat credit for goods produced in 2004-2005 due to dispute over branded goods clearance in 2003-04.

Summary:

The Appellate Tribunal CESTAT NEW DELHI, in the case, dealt with the denial of Modvat credit to the appellant for goods produced in the financial year 2004-2005. The issue arose from a dispute regarding certain goods cleared as branded goods in 2003-04, which were now being questioned.

Upon hearing both sides and examining the records, the Tribunal noted that the assessment for 2003-04 had attained finality, and the revenue authorities were not reopening those assessments. Consequently, the Tribunal opined that it was not permissible for the revenue to argue that the goods assessed as branded in 2003-04 had transformed into unbranded goods. The Tribunal found the demand unsustainable on the face of it and, therefore, allowed the stay application. As a result, recovery was stayed pending the appeal's disposal.

The judgment was delivered by Mr. C.N.B.Nair, Member Technical, and Mr. M.V.Ravindran, Member Judi. The legal representatives present were Sh. R.Santhanam, Advocate for the Appellant, and Sh. S.M.Tata, SDR for the Respondent. The order was dictated and pronounced in open court.