2015 (10) TMI 906 - 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 - From the time of passing adjudication order, law has undergone development on the subject. Therefore, appellant deserves an opportunity of hearing for decision on the claims in respect of the items of input appearing in the Adjudication order. If there are some other items also, which were claimed by the appellant subject to use in manufacture of capital goods or claimed as Cenvat credit that deserves hearing afresh - 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 - Appellant is entitled to a fair opportunity of hearing on all issues both on facts and law as well as the evidence - matter remanded back - Decided in favour of assessee.

Summary

Issues:
1. Eligibility of the appellant for Cenvat credit on inputs used in manufacturing capital goods and plant construction.
2. Whether the appellant deserves a fresh hearing on claims related to input items.
3. Keeping other issues open for decision by the Adjudicating Authority.

Analysis:
1. The principal issue in this case revolves around the eligibility of the appellant for Cenvat credit on inputs utilized in the manufacture of capital goods, plant construction, and machinery installation. The appellant sought a similar treatment as in a previous case listed on the cause list for disposal. The record examination confirmed the similarity, leading to the disposal of these appeals based on the principles applied in the referenced case.

2. The judgment recognizes the evolving legal landscape since the passing of the initial adjudication order. The appellant is deemed deserving of a fresh hearing to decide on claims concerning input items mentioned in the order. Additionally, the appellant is directed to make an application to the Adjudication authority within a month to schedule a re-adjudication on the issues raised in the show-cause notice. The appellant is entitled to a fair opportunity for a hearing on all factual and legal issues, with the Adjudicating authority instructed to issue a reasoned order considering relevant legal precedents.

3. Furthermore, the learned counsel requested that since the appellant is granted an opportunity to argue on the principal issue of Cenvat credit and capital goods credit, other issues raised in the Adjudication should also be kept open for decision by the Adjudicating Authority during the fresh hearing. As a result, the appeal is remanded to the Adjudicating authority with specific directions to ensure a comprehensive hearing and decision on all issues involved in the matter. The Adjudicating authority is expected to frame the issues properly and deliver a well-reasoned order in line with the cited legal decisions.