9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 721 - AT - Central ExciseCENVAT Credit - import of capital goods cleared under N/N. 54/2003-Cus. dated 01.04.2003 by debiting the countervailing duty (CVD) amounting to Rs. 18,37,92,521/- - amount of CVD paid as debit in Served From India Scheme (SFIS) - HELD THAT - It is undisputed that as per Rule 3 of the Cenvat Credit Rules, any duty paid under Section 3 of the Customs Tariff Act is eligible to an assessee as Cenvat credit. It is also undisputed that the appellant in this case has paid the CVD by a debit in the SFIS. Appellant had imported capital goods under Notification No. 54/2003-Cus dated 01.04.2003 and Notification No. 94/2004-Cus dated 11.09.2004. These imports took place in 2005, 2006 and 2007. During the period 2004-05 to 2006-07. In the Foreign Trade Policy there is specific provision to allow Cenvat Credit in respect of scheme like VKGUY, Target Plus, Focus Products Scheme but no such provisions was made for SFIS and during the period from 2007-08 onwards, a general provisions at para 3.12.1 (2007-08 to 2008-09) and para 3.17.6 (2009-10 onwards) was made. During the relevant disputed period, in the Foreign Trade Policy, there was neither an express provision to allow Cenvat credit of the CVD paid through debit in the SFIS scrip nor to disallow the Cenvat Credit of the CVD paid through SFIS. In such situation, admissibility of Cenvat Credit should be decided as per the provisions of Cenvat Credit Rules 2004, applicable during the relevant period. Cenvat Credit Scheme is a special scheme where an assessee can avail credit of the duty paid on the inputs /capital goods/ input services as CENVAT credit under certain conditions. Therefore, this issue requires re-adjudication. The case is remitted to the Adjudicating authority with the direction to decide the admissibility of cenvat credit on disputed imported Capital Goods afresh in accordance with provisions of Cenvat Credit Rules, 2004 and pass a speaking order after giving the assessee a reasonable opportunity of being heard - Appeal allowed by way of remand.
Issues:
1. Admissibility of Cenvat credit on Capital Goods cleared under Notification No. 54/2003-Cus. 2. Interpretation of Foreign Trade Policy provisions regarding Cenvat credit availment. 3. Applicability of Cenvat Credit Rules 2004 in determining admissibility of credit. 4. Time limit for availing Cenvat credit under Rule 4(1) of Cenvat Credit Rules. Analysis: 1. The appeal challenged the Order-In-Original alleging inadmissibility of Cenvat credit on Capital Goods cleared under Notification No. 54/2003-Cus. The appellant imported goods and debited countervailing duty (CVD) in SFIS for which Cenvat credit was claimed. The department objected, citing exemption of goods under the notification. The Commissioner confirmed recovery under Rule 14 of CCR 2004. The appellant argued that credit accrual predates FTP provisions, citing legal precedents. 2. The appellant contended that the absence of specific mention in notifications does not imply inadmissibility of Cenvat credit. The Revenue argued that the Government's policy was against extending credit under SFIS. The appellant's interpretation of the Foreign Trade Policy as prospective was challenged, asserting the Government's consistent denial of credit under SFIS. 3. The Tribunal noted the lack of express provisions in the FTP regarding Cenvat credit through SFIS during the disputed period. It emphasized deciding admissibility based on Cenvat Credit Rules 2004, calling for re-adjudication to determine eligibility. The Tribunal rejected the Revenue's argument for retrospective effect, opting for a prospective interpretation. 4. The Tribunal highlighted Rule 4(1) of Cenvat Credit Rules, noting the appellant's delayed credit claim. The issue of time-barred credit claim and potential depreciation under the Income Tax Act was raised. The Tribunal remitted the case for re-adjudication, directing the Adjudicating Authority to decide admissibility in accordance with Cenvat Credit Rules 2004. This detailed analysis of the judgment addresses the key issues raised, providing a comprehensive understanding of the legal arguments and decisions made by the Tribunal.
|
