2011 (7) TMI 614 - AT - Central Excise

Cenvat credit on the goods namely, channels, shapes, sections angles and plates etc. which have been used as building materials for the fabrication of the structure which is embedded to the earth - Held that - Issue has been settled in the case of Vandana Global Ltd.(2010 - TMI - 76147 - CESTAT, NEW DELHI (LB))wherein the Tribunal has held that the assessee is not entitled for input credit on channels, shapes, sections angles etc. which has been used for the fabrication of the structure which is embedded to the earth. Matter remanded back to the lower appellate authority.

Summary

Issues:
1. Entitlement to input credit on building materials used for fabrication of structure embedded to earth.

Analysis:
The Revenue appealed against an order allowing input credit on goods used as building materials for a structure embedded to the earth. The respondent filed a cross objection seeking condonation of delay, which was rejected due to unsatisfactory reasons. As no one appeared for the respondents, the Tribunal proceeded ex-parte. The main issue was whether the assessee could claim input credit on channels, shapes, sections, angles, etc., used for building materials. The Tribunal referred to a previous decision where it was held that such credit was not permissible. Since the lower authority did not consider this precedent, the matter was remanded for reconsideration after providing a hearing to the appellant. The Revenue's appeal was allowed by way of remand, emphasizing the need for both sides to be heard by the Commissioner (Appeals).