2018 (2) TMI 535 - AT - Central Excise

Demand along with interest thereon and imposing penalty of 25% of the confirmed demand under section 11AC of Central Excise Act 1944 - Held that - It would appear that the claims have not been examined in the manner that they should have been. To enable this to be done the impugned order is set aside and the matter remanded to the original authority who shall decide the matter afresh after taking note of all the submissions made by the appellant.

Summary

Issues:
Challenge to order-in-appeal confirming demand, interest, and penalty under Central Excise Act, 1944 for availing services not conforming to CENVAT Credit Rules, 2004.

Analysis:
The appeal challenged the order-in-appeal confirming a demand of `32,10,358 along with interest and penalty imposed by the original authority. The appellant, a 100% export oriented unit, was alleged to have availed services not conforming to the definition in rule 2(l) of CENVAT Credit Rules, 2004. The contention of the appellant was that detailed submissions were made regarding the nature and utilization of each service, all used in relation to the manufacture of goods. They relied on various precedents to support their claim that the lower authorities had not properly appreciated their submissions. Additionally, relevant invoices were produced to support their eligibility for the claimed services.

The Tribunal noted that the claims made by the appellant had not been examined thoroughly. In light of this, the impugned order was set aside, and the matter was remanded to the original authority for a fresh decision. The original authority was directed to consider all submissions made by the appellant in reaching a decision on the matter. Consequently, the appeal was disposed of in favor of the appellant.