2012 (10) TMI 589 - AT - Central Excise

In-eligible CENVAT Credit - Manufacturing activity - Held that - It is seen that the appellant had been doing some activities of mixing and packing out of the finished goods returned and received back from their dealer. On a specific query assessee submits that they do have the batch records of this mixing and packing but these records can be produced by them before the adjudicating authority. Since the issue involved in this case is on factual matrix as to whether the appellant has undertaken any activity on these goods remand the matter back to the adjudicating authority to reconsider the issue afresh - in favour of assessee by way of remand.

Summary

Issues: Stay petitions for waiver of ineligible CENVAT Credit, interest, and penalty.

The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved Stay Petitions filed for the waiver of amounts confirmed as ineligible CENVAT Credit, interest, and penalty under the CENVAT Credit Rules, 2004. The Tribunal noted that the appeals could be disposed of as the issue was narrow. The condition of pre-deposit was waived, and the appeals were taken up for disposal. The first appellate authority had observed that the assessee failed to produce records regarding the job undertaken on the returned goods. The finished goods cleared initially were returned after payment of Central Excise duty, and the appellant engaged in mixing and packing activities with the returned goods. The appellant claimed to have batch records for the mixing and packing, which they were willing to produce. As the issue revolved around whether the appellant undertook any activity on the goods, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for reconsideration. The Tribunal emphasized that the adjudicating authority must adhere to the principles of natural justice before reaching a conclusion. Consequently, the impugned order was set aside, and the appeals were allowed by way of remand.