2014 (6) TMI 481 - AT - Central Excise

CENVAT Credit - Commissioner allowed credit - Held that - Cenvat credit availed by the appellant on the inputs purchased from a manufacturer while the goods purchased have not resulted out of manufacture in the hands of the seller. There is no evidence to show that amount of duty paid by the appellant has not gone to treasury. Therefore penalizing the appellant to disallow the Cenvat credit may be prejudicial to the interest of justice - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT NEW DELHI dismissed Revenue's appeal against an appellate order allowing Cenvat credit availed by the appellant on inputs purchased from a manufacturer. The goods purchased did not result from manufacture in the hands of the seller, but there was no evidence that duty paid by the appellant did not go to the treasury. Penalizing the appellant by disallowing the Cenvat credit could be prejudicial to justice.