2011 (4) TMI 847 - AT - Central Excise

Waiver of pre-deposit - common inputs have been used in the manufacture of exempted products - re-warehousing certificate for the goods exported to EOU - the credit of the service tax paid on the courier service availed - Held that - If the assessee has agitated any issue before the first appellate authority it needs to be examined by the authority and record findings for the conclusions arrived. Thus both the lower authorities have not addressed the factual submissions made by the assessee before them. Hence without expressing any opinion on the merits of the case keeping all the issues open remand the matter back to the adjudicating authority to re-consider all the issues in its entirety.

Summary

Issues involved:
1. Availment of credit on common inputs used in the manufacture of exempted products
2. Non-submission of re-warehousing certificate for goods exported to EOU
3. Credit of service tax paid on courier service availed

Analysis:
1. The primary issue in this case pertains to the appellant's availment of credit on common inputs allegedly used in the manufacture of exempted products. The Tribunal found that the lower authorities did not adequately address the factual submissions made by the appellant. The Commissioner's findings were deemed misconceived, leading the Tribunal to set aside the orders of the lower authorities. The Tribunal remanded the matter back to the adjudicating authority for a comprehensive re-consideration of all issues, emphasizing the need for adherence to the principles of natural justice during the process.

2. The second issue revolves around the non-submission of a re-warehousing certificate for goods exported to an EOU. While this matter was not the primary focus of the judgment, it was mentioned as one of the issues involved in the case. The Tribunal's decision to remand the case back to the adjudicating authority for a fresh consideration implies that this issue will also be re-examined in its entirety.

3. Lastly, the issue of credit for service tax paid on courier services availed was briefly mentioned. The Tribunal's decision to remand the case and keep all issues open indicates that this aspect will also be subject to re-evaluation by the adjudicating authority. The importance of following the principles of natural justice in addressing all issues was underscored, emphasizing a fair and thorough reconsideration of the case.

In conclusion, the Tribunal allowed the application for waiver of pre-deposit of the amounts involved and stayed the recovery until the appeal is disposed of. The judgment highlights the necessity for a comprehensive review of all issues, ensuring that factual submissions are adequately considered and that principles of natural justice are upheld throughout the adjudication process.