9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 27 - AT - Central ExciseCENVAT Credit - inputs/capital goods - MS Steels, angles, plates etc used for various factory work like fabrication of capital goods etc. - Held that - Prior to 07.07.2009, CENVAT credit availed on various MS plates, angles, channels, etc., which are used for in the factory premises for fabrication as well as for structural purposes, CENVAT credit needs to be allowed as has been decided by the various benches including this bench in the case of Sagar Cements 2018 (11) TMI 738 - CESTAT HYDERABAD - demand set aside. Demand post 07.07.2009 - Held that - The Chartered Engineer s certificate is not that very clear to come to any conclusion. The Chartered Engineer s certificate needs to be considered by the adjudicating authority to come to a conclusion as to how much quantity of steel has been used for the purposes of fabrication of capital goods and other work - matter remanded back to the adjudicating authority to reconsider the issue afresh (of availing CENVAT credit on materials viz., MS angles, plates etc.), after following the principles of natural justice - matter on remand. CENVAT Credit - inputs/capital goods - tyres which were used for payloads - Held that - This issue is also now decided by the Tribunal in the case of Penna Cements 2017 (2) TMI 611 - CESTAT HYDERABAD , where it was held that the tyres are necessary accessory to dumpers which are capital goods used in the manufacturing activity and integrally connected in the manufacture of final products - credit allowed. Appeal allowed in part and part matter on remand.
Issues:
1. Reversal of CENVAT credit availed on duty paid inputs like MS Steels, angles, plates for fabrication of capital goods. 2. Interpretation of CENVAT credit Rules under Rule 2(l) prior to 07.07.2009. 3. Confirmation of demand for the period post 07.07.2009. 4. Eligibility to avail CENVAT credit on Central Excise duty paid on tyres used for payloads. Analysis: Issue 1: Reversal of CENVAT credit on duty paid inputs for fabrication of capital goods The appellant procured various duty paid inputs and utilized them for factory work, including fabrication of capital goods. Show cause notices were issued questioning the availed CENVAT credit, alleging that the items were not capital goods or inputs and were used for structural works. The appellant contested the notices, providing detailed explanations. The adjudicating authority confirmed the demands, interest, and penalties. The counsel cited precedents where CENVAT credit was granted to the assessee for similar inputs used in manufacturing capital goods. The Tribunal found merit in the arguments, setting aside the demands for the period prior to 07.07.2009 based on established judgments supporting the appellant's position. Issue 2: Interpretation of CENVAT credit Rules prior to 07.07.2009 The counsel highlighted the addition to the definition of inputs in the CENVAT credit Rules under Rule 2(l) post 07.07.2009, barring credit on certain items used in manufacturing capital goods. The Tribunal referred to various decisions by High Courts and Tribunals granting CENVAT credit to assesses for the period before this amendment. Relying on established case laws, the Tribunal allowed the CENVAT credit for the relevant period, emphasizing the consistency in judgments favoring the appellant. Issue 3: Confirmation of demand for the period post 07.07.2009 Regarding demands confirmed post 07.07.2009, the clarity of the Chartered Engineer's certificate was questioned. The Tribunal found the certificate unclear and remitted the matter back to the adjudicating authority for a reevaluation based on the certificate's content to determine the quantity of steel used for fabrication of capital goods and other works. The Tribunal left all issues open for reconsideration, emphasizing the importance of a clear assessment based on the principles of natural justice. Issue 4: Eligibility to avail CENVAT credit on Central Excise duty paid on tyres An additional issue arose concerning the eligibility to avail CENVAT credit on Central Excise duty paid on tyres used for payloads. The revenue denied the credit, claiming the tyres were neither inputs nor capital goods. The Tribunal referred to a precedent where CENVAT credit was allowed on similar grounds, concluding that credit should be permitted in this case as well. In conclusion, the Tribunal disposed of the appeal by allowing CENVAT credit on duty paid inputs for fabrication of capital goods, interpreting the CENVAT credit Rules prior to 07.07.2009, remitting the matter for reevaluation post that date, and permitting CENVAT credit on Central Excise duty paid on tyres used for payloads based on established precedents and legal principles.
|
