2018 (9) TMI 1652 - AT - Central Excise

Irregular availment of CENVAT credit - utilization of such credit on inputs and input services in the manufacture of first clearance of craft paper - Held that - The issue decided in the case of M/S. SRIPATHI PAPER & BOARDS VERSUS CCE & ST, TIRUNELVELI 2018 (9) TMI 891 - CESTAT CHENNAI , where it was held that the assesse has to necessarily pay an amount equivalent to the credit availed on inputs, inputs in the process of manufacture and inputs in the final products lying in stock either by deducting the amount from the balance available in their books of accounts and, if there is no sufficient balance, then, by way of cash payment. With regard to the balance credit available in the appellant s books after such reversing as on 31.03.2010, if any, is lapsed - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Appeals against Order-in-Original demanding irregular credit on inputs and input services in craft paper manufacture.

Analysis:
The appeals were filed against the Order-in-Original by the Commissioner of Customs and Central Excise, Salem, demanding irregular credit on inputs and input services used in the manufacture of craft paper. The issue was brought before the Appellate Tribunal for hearing. The appellant was represented by Shri. M. Karthikeyan, Advocate, while Shri. S. Govindarajan, AC (AR), represented the respondent.

During the hearing, the appellant's advocate argued that the issue in question had already been addressed by the same Bench in a previous case involving M/s. Sripathi Paper and Boards. Referring to a Final Order dated 30.05.2018, the advocate highlighted the conditions under Notification No. 4/2006 regarding exemption eligibility for duty payment. The Tribunal had previously ruled that the demand for disallowing Cenvat credit was incorrect based on the conditions specified in the notification. Citing the principle of stare decisis, the appellant pleaded for a similar decision in the present case.

Relying on the precedent set in the earlier case, the Tribunal found that the issue at hand had already been settled. Following the doctrine of stare decisis, the Tribunal allowed the appeal and set aside the findings of the Commissioner, thereby granting relief to the appellant. The operative part of the order was pronounced in open court, confirming the decision in favor of the appellant.

In conclusion, the Appellate Tribunal, Chennai, ruled in favor of the appellant, allowing the appeal against the Commissioner's decision to disallow Cenvat credit on inputs and input services used in the manufacture of craft paper. The decision was based on the precedent set in a previous case and the interpretation of the relevant notification conditions.