2016 (1) TMI 103 - AT - Central Excise

CENVAT Credit - Availment of Credit after clearance of goods - Held that - Duty of the Department was also to examine whether amortized cost of the moulds and dies formed part of the assessable value of the goods manufactured. That is also not done nor find place in the show-cause notice. So also the Department has not made any enquiry to find out the quantity of the capital goods in the hands of the job worker. In absence of detailed enquiry and result thereof without evidence, it is not possible to make a case by Tribunal to acquire jurisdiction over the same while there was no such allegation appears in the show-cause notice. - Decided in favour of assessee.

Summary

The appellate tribunal in Chennai allowed the appeal, stating that the show-cause notice lacked concrete allegations of law infringement. The notice did not establish how the revenue was prejudiced when CENVAT credit was availed. The Department failed to investigate the usage of moulds and dies, the assessable value of goods, and the quantity of capital goods with the job worker. Therefore, the notice was deemed ill-founded and quashed.