9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 172 - AT - Central ExciseCenvat credit on capital goods - M.S. Plates/ H.R. Plates/ C.R. Sheets - Held that - The appellant deserves an opportunity to place its defence in the light of law developed in CCE, Jaipur vs. Rajasthan Spg. & Wvg. Mills Ltd 2010 (7) TMI 12 - SUPREME COURT OF INDIA & Vandana Global Ltd. Versus CCE 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) wherein its is held that Goods like cement and steel items used for laying foundation and for building supporting structures cannot be treated either as inputs for capital goods or as inputs in relation to the final products and therefore, no credit of duty paid on the same can be allowed under the CENVAT Credit Rules.
Issues: Admissibility of Cenvat Credit on capital goods; Need for retesting at adjudication level based on recent legal developments.
In the judgment delivered by Appellate Tribunal CESTAT, New Delhi, the issue revolved around the admissibility of Cenvat Credit on capital goods used by the appellant. The Tribunal noted that the appellant had taken credit of capital goods in question. The Department's representative argued that due to the evolving legal stance on the admissibility of credit concerning specific goods like M.S. Plates, H.R. Plates, and C.R. Sheets, the matter required reevaluation at the adjudication level. The Tribunal referred to recent judgments, including Vandana Global Ltd. vs. CCE, Raipur; CCE, Jaipur vs. Rajasthan Spg. & Wvg. Mills Ltd.; Saraswati Sugar Mills vs. CCE, Delhi-III; and CCE, Mysore vs. ICL Sugar Ltd., where directions were issued to reconsider similar cases, granting the appellant a fair opportunity to present their defense. Consequently, the Tribunal remanded both appeals to the Adjudicating Authority for a fresh adjudication in line with the evolved legal principles, ensuring due process of justice. The judgment was pronounced in the open court, emphasizing the importance of re-evaluating the matter based on the latest legal developments and providing the appellant with a fair chance to present their case.
|
