2012 (4) TMI 363 - AT - Central Excise

Availment of CENVAT Credit on the inputs utilized in the manufacture of diesel engines cleared for export - Department objected that claim of rebate of the duty paid by them on debit of the amount by the job workers - first appellate authority dismissed the appeals on the ground of non-compliance of pre-deposit ordered Held that - no dispute regarding the export of the finished goods by the appellant or on clearance from the job workers premises as that there cannot be any demand of CENVAT Credit on the inputs which have been consumed - set aside the impugned order and remit the matter back to first appellate authority to hear and dispose the appeals without insisting upon any pre-deposit.

Summary

Issues:
1. Dismissal of appeals based on non-compliance of pre-deposit.
2. Availment of CENVAT Credit on inputs used in manufacturing diesel engines for export.
3. Claiming rebate of duty paid by job workers.
4. Disposal of appeal without insisting on pre-deposit.

Analysis:
The appellate tribunal noted that the first appellate authority had dismissed the appeals due to the non-compliance of a pre-deposit order. Upon hearing both sides and examining the records, the tribunal observed that the issue primarily revolved around the availment of CENVAT Credit on inputs used in manufacturing diesel engines for export. The Department objected to the appellant's claim for rebate of duty paid by job workers during the export process. However, the tribunal found no dispute regarding the export of finished goods or clearance from the job workers' premises. Consequently, the tribunal concluded that there should be no demand for CENVAT Credit on the consumed inputs and directed the first appellate authority to address the matter on its merits.

The tribunal set aside the impugned order and remitted the case back to the first appellate authority for a fresh hearing without requiring any pre-deposit. Emphasizing the application of principles of natural justice, the tribunal instructed the first appellate authority to consider the question of rebate and CENVAT Credit separately. The tribunal's decision aimed to ensure a fair and comprehensive review of the case, allowing for different orders to be passed on the related issues. Ultimately, the appeals were disposed of in accordance with the tribunal's directions, providing clarity on the process to be followed by the first appellate authority in resolving the matter.