2013 (2) TMI 391 - AT - Central Excise

Eligibility to avail Cenvat credit on the duty paid on welding Electrodes used for repairs and maintenance of the machinery in their premises - appellant has taken the point of limitation as there cannot be any intention to evade of Central Excise duty by availing the Cenvat credit of the duty on the ground that the returns were filed before the lower authorities - Held that - As the question of limitation needs to be addressed by the lower authorities & there is no finding, the matter needs reconsideration by the first appellate authority on the question of limitation. Matter remanded to the first appellate authority for reconsideration, after following the principles of natural justice.

Summary

Issues: Eligibility of the appellant to avail Cenvat credit on duty paid on welding electrodes.

The judgment by the Appellate Tribunal CESTAT Ahmedabad involved the issue of whether the appellant was eligible to avail Cenvat credit on duty paid on welding electrodes used for repairs and maintenance of machinery. The appellant had taken the credit between January 2006 to March 2010, and a show cause notice was issued in December 2010. The appellant argued that the issue of availing Cenvat credit was disputed with conflicting judgments, and they raised the point of limitation, stating there was no intention to evade Central Excise duty as returns were filed. However, the lower authorities did not address the limitation issue in their order. The tribunal noted the need for the lower authorities to address the question of limitation and remanded the matter for reconsideration, emphasizing the importance of following the principles of natural justice. The tribunal set aside the impugned order without expressing any opinion on the merits of the case, keeping all issues open for reconsideration by the first appellate authority.

In conclusion, the judgment highlighted the importance of addressing the issue of limitation raised by the appellant regarding the eligibility to avail Cenvat credit on duty paid on welding electrodes. The tribunal emphasized the need for the lower authorities to reconsider the matter, ensuring the principles of natural justice are followed. The judgment did not provide a definitive opinion on the merits of the case, leaving all issues open for further consideration by the first appellate authority.