2014 (2) TMI 1096 - AT - Central Excise

Denial of CENVAT Credit - Supplier of input has wrongly paid duty - Whether activity of appellant amounts to manufacture - Held that - credit cannot be denied on the ground that activity undertaken by the supplier of input did not amount to manufacture. In these circumstances, as the supplier of input is not party to the present proceeding and the assessment cannot be reopened at the recipient end - Following decision of C.C.E., Delhi-III v. Neel Metal Products Ltd. 2009 (1) TMI 155 - PUNJAB & HARYANA HIGH COURT - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal filed by the appellant against the denial of credit of Rs. 2,53,199/- by the Commissioner (Appeals) due to the supplier of input wrongly paying duty. The Tribunal found that the activity of the supplier did not amount to manufacture, but since the supplier had paid duty and was not part of the proceedings, the assessment could not be reopened at the recipient end. Citing precedent, the Tribunal set aside the impugned order and allowed the appeal.