2012 (6) TMI 2 - AT - Central Excise

Denial of Cenvat credit respondent availed CENVAT credit on inputs and capital goods used in the manufacture of dutiable as well as exempted final products - proceedings were initiated against them for recovery of CENVAT Credit availed on services utilized in the manufacture of goods on job work basis which were cleared under the Notification No. 214/86-CE as amended and the lower adjudicating authority Held that - in the case of Escorts Limited. The learned Counsel appearing for the appellant is not able to point out any reason not to follow the decision of the Supreme Court. No question of law arises in this appeal. Appeals of revenue dismissed.

Summary

Issues: Appeal against CENVAT credit denial on job work basis under Notification No. 214/86-CE.

The judgment involves an appeal by the Revenue against the order-in-appeal allowing the respondent's appeal and setting aside the denial of CENVAT credit by the lower adjudicating authority. The respondent, engaged in Sponge Iron manufacturing and job work, availed CENVAT credit on inputs and capital goods for dutiable and exempted final products. The dispute arose regarding the recovery of CENVAT credit on services used in job work manufacturing under Notification No. 214/86-CE. The Commissioner (Appeals) relied on a Tribunal decision in a similar case to allow the respondent's appeal, leading to the Revenue's present appeal.

The department challenged the Tribunal's decision in a similar case with the Allahabad High Court, and another Tribunal decision with the Hon'ble Bombay High Court. The Tribunal's decision in the case of Sterlite Industries (I) Ltd. was cited, where the Hon'ble Bombay High Court rejected the department's appeal, emphasizing that the Tribunal's judgment was based on Supreme Court precedent and no legal question arose for consideration. Consequently, the order of the Commissioner (Appeals) was upheld, and the Revenue's appeals were dismissed.