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2018 (7) TMI 1370 - HC - Central ExciseCENVAT Credit - duty paying invoices - denial on the ground that the assessee failed to prove the sales returns in question for which it raised RBA series of Invoices and could not relate these RBA invoices to the original duty paying documents known as IBA invoices - Scope of SCN. Held that - There is no merit in the contention raised by the learned counsel for the assessee and no substantial question of law arises in the present case requiring our consideration in the present appeal under Section 35G of the Act - It is clear that a part of the relief was given to the assessee for Cenvat Credit in respect of Ten consignments, because the assessee could relate the Sales Returns to the original sales invoices through the Lorry Receipts with respect to said Ten consignments but for the remaining four consignments, such Cenvat Credit could not be allowed for want of relevant corroborative evidence produced by the assessee. Scope of SCN - Held that - The Show Cause Notice given to the assessee in the present case was for disallowing the Cenvat Credit and therefore after having examined each and every transaction, if the Appellate Authorities who are the fact finding authorities under the Act have returned such findings of facts based on evidence, the same cannot be assailed on the ground that they have gone beyond the scope of the Show Cause Notice. Appeal dismissed - decided against appellant.
Issues:
1. Disallowance of Cenvat Credit to the assessee for failure to prove sales returns. 2. Invocation of extended period for suppression of facts by the appellant. 3. Allegation of authorities going beyond the scope of the Show Cause Notice. 4. Interpretation of abbreviations used in the case documentation. Issue 1: Disallowance of Cenvat Credit: The case involved the disallowance of Cenvat Credit to the assessee, a manufacturer of industrial paints, due to the failure to prove sales returns. The Customs, Excise and Service Tax Appellate Tribunal, Bengaluru, upheld the decision of the Commissioner (Appeals) in favor of the Revenue. The Tribunal examined the documents provided by the appellant and allowed credit for some consignments where return of goods was substantiated, but disallowed credit for others lacking evidence. The appellant's argument that findings went beyond the scope of the Show Cause Notice was dismissed, and the Tribunal affirmed the decision of the Commissioner (Appeals). Issue 2: Invocation of Extended Period: The extended period was invoked due to the appellant's alleged suppression of facts regarding availing credit on RBA series of invoices. The authorities found that the appellant failed to provide sufficient evidence to establish the return of goods, leading to the disallowance of Cenvat Credit. The Tribunal upheld the decision, stating that the extended period was rightly invoked based on the appellant's actions. Issue 3: Allegation of Authorities Going Beyond Scope: The appellant argued that the authorities went beyond the scope of the Show Cause Notice by disallowing Cenvat Credit on sales returns. However, the High Court held that the findings of the fact-finding authorities based on evidence could not be challenged on the grounds of exceeding the Show Cause Notice's scope. The High Court rejected the appellant's contention and found no merit in the argument that the authorities had overstepped their jurisdiction. Issue 4: Interpretation of Abbreviations: The High Court expressed concern over the lack of explanation for certain abbreviations used in the case documentation until the appeal was filed. The learned counsel clarified that RBA stood for "Reversal sales invoices from Bangalore site AAP" and IBA for "Inter-State sales from Bangalore site AAP." Additionally, the term "ERP" was explained as "Enterprise Resource Planning" to provide clarity on the transactions in question. In conclusion, the High Court found no substantial question of law requiring further consideration in the appeal, dismissing the appellant's case as devoid of merit. The judgment emphasized the importance of providing clear evidence to substantiate claims and upheld the decisions of the lower authorities in disallowing Cenvat Credit based on the lack of proof regarding sales returns.
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