2015 (9) TMI 1371 - AT - Central Excise

Denial of CENVAT Credit - Whether appellant is eligible to the Cenvat credit on the inputs claimed to have been used in the manufacture of capital goods, construction of the plant as well as installation of machinery etc - Held that - In view of fair submission of the appellant and also development of the law, appellant is directed to make an application to the Adjudication authority within a month of receipt of this order to fix the hearing for readjudication afresh on the issues involved as emerged from the show-cause notice. - Matter remanded back - Decided in favour of assessee.

Summary

Issues involved:
Whether the appellant is eligible for Cenvat credit on inputs used in manufacturing capital goods, plant construction, and machinery installation.

Analysis:

1. The main issue in this appeal pertains to the eligibility of the appellant for Cenvat credit on inputs utilized in the production of capital goods, plant construction, and machinery installation. The law has evolved since the adjudication order, warranting a fresh hearing for the appellant to present their case regarding the items of input mentioned in the order. The appellant is entitled to a hearing on the claims related to the items used in the manufacture of capital goods or claimed as Cenvat credit, in line with various judicial precedents such as Commissioner of Central Excise, Jaipur Vs Rajasthan Spinning & Weaving Mills Ltd., Commissioner of Central Excise, Mysore Vs ICL Sugars Ltd., and others cited in the judgment.

2. The counsel representing the appellant has requested that all issues involved in the adjudication be kept open for decision by the Adjudicating Authority during the fresh hearing on the principal issue of Cenvat credit and capital goods credit. Considering the appellant's submission and the legal developments, the appellant is directed to apply to the Adjudication authority within a month to schedule a re-adjudication hearing on all issues outlined in the show-cause notice.

3. It is emphasized that the appellant should receive a fair opportunity for a hearing on all factual and legal issues, including evidence. The Adjudicating authority, after framing the issues properly, is mandated to issue a reasoned and comprehensive order, taking into account the relevant judicial decisions mentioned in the judgment. Consequently, the appeal is remanded to the Adjudicating authority with the specified directions for further proceedings.

This detailed analysis of the judgment highlights the key aspects of the issues involved, the legal developments impacting the case, and the procedural steps to be followed for a fair re-adjudication process.