2023 (6) TMI 450 - AT - Central Excise

CENVAT Credit - inputs - chequered plate, angles, channels and beams - civil construction service - preparation of draft project report - modification of old bullock cart - denial on account of nexus. CENVAT Credit on Construction service - HELD THAT - The same is already reversed by the appellant alongwith interest in the months of March/April, 2018. From the reading of the impugned order it seems that the learned Commissioner has not gone into the details of the project report submitted by the appellant for sugar plant modernization and bagasse based cogeneration project in support of their submission that the Cenvat credit has been availed on the service of preparation of project report for expansion of existing sugar plant with co-generation plant and the same is admissible. There has to have findings regarding accepting or rejecting the submissions of the appellant after taking recourse to the said project report and more particularly its executive summary - this issue needs to be re-looked into by the learned Commissioner and therefore the same is remanded to the first appellate authority. Bullock carts - HELD THAT - It is submitted that bullock carts have been shown as capital goods in their balance sheet/books of account but the same was not verified by the learned Commissioner. He tried to explain the books of account to me but since the same has to be verified by the authorities below therefore the same is also remanded to the learned Commissioner (A) to be decided afresh. Cenvat credit availed on HR Steel sheet (chequered plate), MS Angle, channel, non alloy steel bar and MS beam - HELD THAT - If the claim made by the appellant, which, as claimed by them, is supported by the sufficient evidence, then it has to be looked into by the learned Commissioner and cannot be brushed aside merely being an afterthought. Therefore this also has to be looked into by the learned Commissioner. The appeals are remanded to the learned Commissioner ( Appeals ) to be decided afresh within a period of three months, after giving reasonable opportunity of hearing to the appellants and after looking into the evidence/ case laws produced by the appellants in support of their submissions/claims. The appeals are accordingly allowed by way of remand.

Summary

Issues involved: Appeal against order denying Cenvat credit on various services and goods.

Details of the judgment:

1. Construction service Cenvat credit:
The appellant availed Cenvat credit on construction service which was later reversed by them along with interest. The Commissioner did not thoroughly examine the project report submitted by the appellant for sugar plant modernization. The Tribunal held that a detailed review of the project report is necessary to determine the admissibility of the Cenvat credit. The issue was remanded to the first appellate authority for reconsideration.

2. Bullock carts as input service:
The appellant claimed that providing bullock carts to transport sugarcane to their factory qualifies as an input service. They argued that bullock carts were essential in bringing raw materials to the factory. The Commissioner did not verify the appellant's claim that bullock carts were shown as capital goods in their accounts. The Tribunal decided to remand this issue to the Commissioner for a fresh decision.

3. Cenvat credit on steel sheets and other goods:
Regarding the Cenvat credit availed on steel sheets and other materials, the appellant contended that these goods were used for repair and maintenance, supported by a certificate from a chartered engineer. The Tribunal emphasized that if the appellant's claim is backed by sufficient evidence, it must be considered by the Commissioner. The issue was also remanded for further examination.

In conclusion, the Tribunal set aside the impugned orders and remanded the appeals to the Commissioner for fresh consideration within three months. The appellants were to be given a reasonable opportunity to present their case and provide evidence supporting their claims. The appeals were allowed by way of remand.