2024 (10) TMI 562 - AT - Central Excise

Cenvat credit - ISO Tank which is used for packing and transportation of the appellant s excisable final product namely Di-methyl Sulphate (DMS) from factory to the consignee premises/destination - HELD THAT - The identical issue in the appellant s own case has been considered by this Tribunal in AARTI INDUSTRIES LTD VERSUS COMMISSIONER OF C.E. S.T. -SURAT-I 2024 (9) TMI 1169 - CESTAT AHMEDABAD whereby the matter was remanded to the adjudicating authority for passing a de-novo order. This matter also needs to be remanded so the adjudicating authority can decide both the matters together - Appeal is allowed by way of remand to the adjudicating authority for passing a fresh order.

Summary

Issues:
Whether the appellant is entitled to Cenvat credit on ISO Tank used for packing and transporting excisable final product.

Analysis:
The issue in the present case revolves around the entitlement of the appellant to claim Cenvat credit on an ISO Tank used for packing and transporting the final product. The appellant's counsel argued that a similar issue in the appellant's own case was remanded to the adjudicating authority for fresh consideration by the Tribunal in a previous order. The appellant's initial classification of the ISO Tank under capital goods was later rectified to claim credit under inputs. The appellant cited various circulars and judgments supporting their entitlement to the credit based on the assessable value of the final product. The adjudicating authority's denial of credit solely based on the initial classification was deemed a violation of natural justice by the Tribunal. The Tribunal emphasized that if the credit is available under inputs despite being initially claimed under capital goods, it should be extended. The impugned order was set aside, and the matter remanded for a fresh decision by the adjudicating authority, with consideration of all relevant circulars and judgments.

This judgment underscores the importance of correctly classifying inputs for Cenvat credit and the need for adjudicating authorities to consider all aspects before denying such credits. The Tribunal's decision to remand the matter highlights the significance of following principles of natural justice and ensuring a thorough examination of the facts before reaching a decision. The reliance on circulars and judgments to support the appellant's claim demonstrates the legal basis for claiming Cenvat credit on packaging materials. The Tribunal's direction for a fresh order within a specified timeframe emphasizes the need for expeditious resolution of such matters to provide clarity and fairness to the parties involved. Overall, this judgment serves as a reminder of the procedural and substantive requirements for claiming Cenvat credit under the relevant laws and regulations.