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2018 (2) TMI 1389 - AT - Central ExciseCENVAT credit - capital goods - MS Plates etc. - Held that - MS Plate were used for fabrication in tanks - In absence of any allegation in the SCN or another expert s opinion, Chartered Engineer Certificate produced by the appellant needs to be accepted - credit allowed - appeal allowed - decided in favor of appellant.
Issues:
1. Availment of cenvat credit on MS Plates Analysis: The appeal in question was against an order-in-appeal dated 10.07.2017 concerning the availment of cenvat credit on MS Plates. The appellant had availed cenvat credit for MS Plates between April 2010 and November 2015. During an audit, it was observed that the MS Plates did not qualify as capital goods under the Cenvat Credit Rules, 2004. This led to a Show Cause Notice being issued to disallow the cenvat credit. The authorities relied on a previous decision and rejected the appellant's claim that a Chartered Engineer had certified the consumption of MS Plates in the fabrication of tanks. However, the Tribunal noted that a similar issue had been addressed by the Hon’ble High Court of Chhattisgarh in a case involving Associated Cement Co. Ltd. The High Court held that cenvat credit cannot be denied, overturning the previous decision. This decision was supported by a Supreme Court ruling in the case of Rajasthan Spinning & Weaving Mills Ltd. The Tribunal found that the MS Plates were indeed used for fabrication in tanks. Discrepancies arose regarding the quantity of MS Plates used, with the authorities citing a lower figure compared to the Chartered Engineer's assessment. The Tribunal emphasized the need to follow expert opinions and stated that if the Revenue wished to challenge the expert's opinion, they should have provided another expert opinion or issued a different Show Cause Notice. Since no such action was taken, the Tribunal ruled that the Chartered Engineer's Certificate should be accepted. Consequently, the Tribunal held that the impugned orders were not in line with the legal precedents set by various High Courts on the issue. Therefore, the Tribunal set aside the impugned orders and allowed the appeals. In conclusion, the Tribunal's decision was based on the interpretation of the Cenvat Credit Rules, expert opinions, and legal precedents set by higher courts. The judgment emphasized the importance of following expert assessments and ensuring that decisions are in accordance with established legal principles.
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