2015 (9) TMI 1373 - 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:
1. Eligibility of appellant for Cenvat credit on inputs used in the manufacture of capital goods, plant construction, and machinery installation.

Analysis:
The judgment addresses the principal issue of whether the appellant is entitled to Cenvat credit on inputs utilized in the production of capital goods, plant construction, and machinery installation. It acknowledges the evolving legal landscape on the matter since the adjudication order was issued. The appellant is granted a fresh opportunity for a hearing to present arguments on the claims related to the items of input mentioned in the adjudication order. The judgment references several cases to emphasize the importance of allowing the appellant a fair hearing, including Commissioner of Central Excise, Jaipur Vs Rajasthan Spinning & Weaving Mills Ltd., Commissioner of Central Excise, Mysore Vs ICL Sugars Ltd., and others.

The learned counsel representing the appellant requests 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. The judgment highlights the necessity for the appellant to submit an application to the Adjudication authority within a month to schedule the hearing for readjudication on all issues emerging from the show-cause notice. It stresses that the appellant is entitled to a fair opportunity for a hearing on all factual and legal issues, as well as the evidence presented.

Consequently, the judgment remands the appeal to the Adjudicating authority with specific directions. It instructs the Adjudicating authority to conduct a thorough hearing, frame the issues properly, and deliver a reasoned order considering the decisions cited in the judgment. The aim is to ensure that a fair and comprehensive decision is reached on all issues raised during the adjudication process.

In conclusion, the judgment underscores the importance of providing the appellant with a fair hearing and directs the Adjudicating authority to reconsider all issues involved in the case, including the eligibility for Cenvat credit, in light of the evolving legal framework and relevant precedents cited.