2017 (2) TMI 191 - AT - Central Excise

Credit of NCCD on POY - Held that - I find that show-cause notice has been issued for wrong availment and utilization of the credit taken of NCCD. So far as the availment of credit is concerned, the issue is covered by the decision of the Tribunal in the case of Silvassa Industries Pvt. Ltd. 2005 (12) TMI 136 - CESTAT, MUMBAI wherein it was held that Firstly, PTY cannot be considered as exempted goods as other duties are imposable on the same. Secondly, if PTY is exported, the appellants would be entitled to use NCCD credit or get a refund of the same. NCCD credit can and has also been utilized on clearance of POY itself - Appeal dismissed - decided in favor of the assessee.

Summary

Issues:
Appeal against allowing credit of NCCD on POY.

Analysis:
The appeal was filed by the Revenue against the Commissioner (Appeals) order allowing credit of NCCD on POY. The Revenue contended that the Commissioner did not address the issue of utilization of NCCD paid on POY. The Tribunal considered the arguments and found that the availment of credit issue was covered by a previous decision and affirmed by the Bombay High Court. However, the Tribunal noted that the utilization of NCCD on POY was not clearly specified in the appeal. The order-in-original stated that NCCD was payable on POY, but no demand was raised for it. Therefore, the Tribunal concluded that challenging the utilization of credit for NCCD on POY was vague and dismissed the appeal.

In summary, the Tribunal upheld the Commissioner's decision to allow credit of NCCD on POY. The Tribunal found that the availment of credit issue was covered by previous decisions, but the challenge regarding the utilization of NCCD on POY was vague and not clearly specified in the appeal. As no demand was raised for NCCD on POY, the Tribunal dismissed the Revenue's appeal.