2024 (10) TMI 806 - AT - Central Excise

Wrongful availment of CENVAT credit on input services relating to construction of co-generative power plant in their factory during period from September 2010 to March 2012 - HELD THAT - The learned Commissioner had not considered the documents placed before him in support of their claim that civil construction work had been completed prior to 31.03.2011. These documents and are required to be specifically scrutinised by the learned Commissioner and also the objection raised by the learned AR for the Revenue about the admissibility of cenvat credit on the invoices raised after 01.04.2011 in view of Point of Taxation Rules, also needs to be examined. Thus, the matter is remanded to the adjudicating authority to address all the issues raised at the time of de novo adjudication. Appeal allowed by way of remand.

Summary

Issues:
- Eligibility of CENVAT credit on input services related to civil construction work of co-generative power plant.
- Applicability of Rule 2(l) of CENVAT Credit Rules, 2004.
- Consideration of documents supporting the completion of civil construction work before 31.03.2011.
- Examination of invoices raised post 01.04.2011 under Point of Taxation Rules, 2011.

Analysis:
The appeal was filed against an Order-in-Original passed by the Commissioner of Central Excise, Cochin, alleging wrongful CENVAT credit availed by the appellants on input services related to the construction of a co-generative power plant. The appellants contended that the services used for setting up the power plant were eligible input services under Rule 2(l) of CENVAT Credit Rules, 2004. They argued that the civil construction work was completed before 31.03.2011, making the denial of credit unsustainable. The documents provided by the appellants to support their claim were not considered by the Commissioner. The Revenue's representative raised concerns about the scrutiny of documents and the applicability of Point of Taxation Rules, 2011 on invoices raised post 01.04.2011.

The Tribunal found the main issue to be the eligibility of CENVAT credit on input services related to civil construction work of the power plant received before and after 01.04.2011. The appellant's argument that denial of credit post 01.04.2011 was unjustified due to the completion of civil work before that date was noted. The Tribunal observed that the Commissioner did not adequately consider the documents supporting the completion of civil work before 31.03.2011. Additionally, the objection raised by the Revenue regarding the admissibility of credit on post-01.04.2011 invoices under Point of Taxation Rules needed examination. Therefore, the matter was remanded to the adjudicating authority for a thorough review, addressing all raised issues and ensuring compliance with natural justice principles. The impugned order was set aside, and the appeal was allowed by way of remand for de novo adjudication. All issues were kept open for further consideration.