2011 (4) TMI 517 - HC - Central Excise

Appeal to High court - Whether the assessee is entitled to the benefit of cenvat credit on the tax paid in respect of welding table necessarily involves a question among other things as to the determination of any question having a relation to the rate of duty of excise or to the value of goods for the purpose of assessment, which the Apex Court alone is entitled to decide under Section 35L of the Central Excise Act, 1944 and it does not fall within the jurisdiction of this Court under Section 35G which is invoked by the appellant - Hence, the appeal is rejected as not maintainable reserving liberty to the appellant to approach the Apex Court challenging the very same order.

Summary

Issues Involved:
1. Entitlement to Cenvat credit on tax paid for welding table.
2. Jurisdiction of the High Court in deciding the matter.
3. Maintainability of the appeal.

Analysis:

1. The primary issue in this case revolves around the entitlement of the assessee to claim Cenvat credit on the tax paid for the welding table. The Tribunal had ruled in favor of the assessee, stating that the welding table, being used for production, qualifies as an input under the broad definition encompassing all goods used in or in relation to manufacturing within the factory. Consequently, the Tribunal allowed the benefit of Cenvat Credit on the tax paid for the input.

2. The High Court delved into the jurisdictional aspect of the matter, emphasizing that the question of entitlement to Cenvat credit on the tax paid for the welding table involves considerations related to the determination of excise duty or the value of goods for assessment. The Court highlighted that such issues fall within the exclusive purview of the Apex Court under Section 35L of the Central Excise Act, 1944. The appellant's invocation of Section 35G did not confer jurisdiction on the High Court to decide the matter.

3. Ultimately, the High Court determined the maintainability of the appeal, concluding that it was not within its jurisdiction to adjudicate on the entitlement to Cenvat credit concerning the tax paid for the welding table. The Court rejected the appeal on the grounds of lack of maintainability, while granting the appellant the liberty to approach the Apex Court to challenge the same order. Additionally, the Court directed the registry to return the certified copies accompanying the appeal memo to facilitate the revenue's potential appeal to the Supreme Court.

This judgment underscores the intricate legal nuances surrounding the entitlement to Cenvat credit and the delineation of jurisdiction between different levels of the judiciary in matters concerning excise duty and assessment values.