2018 (8) TMI 1953 - AT - Central Excise

CENVAT Credit - input - Bituminous Coal - manufacture of various excisable goods such as PVC Resin C. Chlorine C. Soda HCL Oil Sulphuric Acid Cal. Carbide Hydrogen Gas etc. falling under First Schedule to the Central Excise Tariff Act 1985 - HELD THAT - An identical issue has come up for consideration before the Tribunal in the case of M/S BIRLA CORPORATION LTD. VERSUS CGST CC CE JABALPUR 2018 (7) TMI 1264 - CESTAT NEW DELHI wherein it was held that There is no element of fraud and suppression on the part of the appellant. The issue herein is recurring in nature. The appellant is entitled to take CENVAT credit on the supplementary invoices in question. Credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against Order-in-Original disallowing Cenvat Credit on Bituminous Coal procurement
- Interpretation of Tribunal's earlier decision in M/s Birla Corporation Ltd. case
- Entitlement of Appellants to Cenvat Credit on supplementary invoices

Analysis:
The appeal was filed against the Order-in-Original disallowing Cenvat Credit on the procurement of Bituminous Coal during the period from June to August 2013. The Appellants, engaged in manufacturing excisable goods, had availed Cenvat Credit on duty paid for the coal purchased from M/s South Eastern Coalfields Ltd. The Department disallowed the credit through a show cause notice, leading to the impugned order. The Tribunal considered an identical issue in the M/s Birla Corporation Ltd. case and referred to a previous decision involving South Eastern Coalfields Ltd. The Tribunal found no fraud or suppression by the Appellants and allowed the appeal, stating that the Appellants were entitled to take Cenvat Credit on the supplementary invoices in question.

The Tribunal's decision in the M/s Birla Corporation Ltd. case was crucial in this appeal, as it set a precedent for allowing Cenvat Credit on similar issues. By following the earlier decision, the Tribunal set aside the impugned order and granted relief to the Appellants. The Tribunal emphasized the recurring nature of the issue and the absence of fraud or suppression, leading to the conclusion that the Appellants were entitled to the Cenvat Credit on the disputed invoices. Consequently, the appeal filed by the Appellants was allowed, providing them with the necessary relief and upholding their entitlement to the Cenvat Credit on the procurement of Bituminous Coal.