2018 (5) TMI 185 - AT - Central Excise

CENVAT credit - invoices issued, but the materials were not supplied by M/s Annapurna Industries Pvt Ltd - the proceedings of Annapurna Industries Pvt Ltd has been though concluded, however, the issues raised and decided in the said case was not before the Ld Commissioner (Appeals) - Held that - the Ld Commissioner (Appeals) has not discussed in detail the grounds raised in their appeal assailing the order of the adjudicating authority. Also, he could not have the benefit to take into consideration the judgment in Annapurna Industries Pvt Ltd s case, delivered subsequently. The appeals are remanded to the Ld Commissioner (Appeals) to decide the issues afresh on merit after taking into consideration the judgment of this Tribunal in Annapurna Industries Pvt Ltd case - appeal allowed by way of remand.

Summary

Issues: Appeal against order passed by Commissioner of Central Excise, Customs and Service Tax (Appeals) -VADODARA-II regarding availing Cenvat Credit on invoices without receiving material.

Analysis:
1. The appellant availed Cenvat Credit of ?10,33,808/- based on invoices from M/s Annapurna Industries Pvt Ltd, which were found to be without actual material supply. Show cause notice issued for credit recovery confirmed with interest and penalty.

2. The Ld Chartered Accountant for the appellants argued that the order lacked reasoning and failed to examine the manufacturing aspects on a job work basis. He acknowledged the conclusion of proceedings against Annapurna Industries Pvt Ltd but highlighted that relevant issues were not addressed by the Ld Commissioner (Appeals).

3. On the contrary, the Ld AR for the Revenue contended that the judgment in Annapurna Industries Pvt Ltd's case, referenced by the appellant, was not considered by the Ld Commissioner (Appeals). Requested remand for fresh consideration based on the said judgment and issues.

4. The Tribunal observed that subsequent to the Ld Commissioner (Appeals) order, the case against Annapurna Industries Pvt Ltd was adjudicated, with the Tribunal disposing of the appeal. Critically, the Ld Commissioner (Appeals) did not delve into the grounds raised in the appeal challenging the adjudicating authority's decision and could not consider the later judgment in Annapurna Industries Pvt Ltd's case.

5. Consequently, the appeals were remanded to the Ld Commissioner (Appeals) for a fresh assessment on merit, incorporating the Tribunal's judgment in Annapurna Industries Pvt Ltd's case. The appeals were allowed through remand, emphasizing the need for a comprehensive reconsideration of the issues involved.