2018 (2) TMI 471 - AT - Central Excise

CENVAT credit - inputs - it was alleged that sister concern/units have already taken the claim for refund - Held that - matter needs to be examined afresh, both the parties have agreed to remand the matter to the adjudicating authority to verify whether the sister concern/units have already taken the claim for refund or not - appeal allowed by way of remand.

Summary

Issues:
Appeal against order-in-original No. 23-24/2008 dated 30/09/2008 regarding denial of CENVAT credit on duty paid by the appellant for medicines manufactured by its sister concerns.

Analysis:

Issue 1: Denial of CENVAT credit
The appellant, engaged in medicine manufacturing, availed CENVAT credit on duty paid for drugs supplied by its sister concerns. The department denied this credit, leading to the appeal. Both parties presented their arguments before the Tribunal. Upon review, the Tribunal found the need for a fresh examination of the matter. It was agreed that the adjudicating authority should verify if the sister concerns had already claimed a refund to prevent double benefit. The Tribunal set aside the impugned order and remanded the case to the original authority for a fresh decision. The authority was instructed to provide the appellant with a proper opportunity for a hearing and admit fresh evidence if necessary.

Conclusion:
The Tribunal allowed the appeal by way of remand, emphasizing the importance of ensuring no double benefit is claimed and providing the appellant with a fair opportunity to present their case.