2015 (10) TMI 868 - AT - Central Excise

CENVAT Credit - whether appellant is eligible to the Cenvat credit on inputs and capital goods credit in respect of the goods used in the construction of the plant as well as installation of machinery etc. - Held that - Since the appellant is granted an opportunity to argue on the principal issue of Cenvat credit and capital goods credit, other issues involved in the Adjudication may also be kept open for decision by Adjudicating Authority, hearing the appellant afresh. In view of fair submission of the appellant and also development of the law, appellant is directed to make an application to the Adjudication authority within a month of receipt of this order to fix the hearing on readjudication of the matter afresh on the issues involved as emerged from the show-cause notice. Appellant is entitled to a fair opportunity of hearing of all issues both on facts and law as well as the evidence. Upon hearing and framing the issue properly, learned Adjudicating authority shall pass a reasoned and speaking order - Matter remanded back - Decided in favour of assessee.

Summary

Issues Involved:
1. Eligibility of the appellant for Cenvat credit on inputs and capital goods credit in the construction of the plant and installation of machinery.
2. Whether the appellant deserves a fair opportunity of hearing on all issues involved in the Adjudication order.

Analysis:
1. The principal issue in this appeal revolves around the eligibility of the appellant for Cenvat credit on inputs and capital goods credit used in the construction of the plant and installation of machinery. The law has evolved on this subject since the date of litigation, necessitating a fair opportunity for the appellant to address the claims related to specific items mentioned in the Adjudication order. Additionally, the appellant may have other items subject to capital goods credit or Cenvat credit, which also require a hearing. The appellant is directed to make an application to the Adjudication authority within a month to fix a hearing for readjudication of all issues emerged from the show-cause notice. The appellant is entitled to a fair hearing on all issues concerning facts, law, and evidence, and the Adjudicating authority must pass a reasoned and speaking order, giving due weightage to the appellant's submissions.

2. The learned counsel has submitted that since the appellant is granted an opportunity to argue on the principal issue of Cenvat credit and capital goods credit, all other issues involved in the Adjudication should also be kept open for decision by the Adjudicating Authority after hearing the appellant afresh. The development of the law and the appellant's fair submission warrant a comprehensive hearing on all issues. Therefore, the appeal is remanded to the Adjudicating authority with the direction to ensure a fair opportunity for the appellant to present arguments on all issues, both factual and legal, and to issue a well-reasoned order after proper framing of the issues. The appellant's submissions are to be duly considered in the final order passed by the Adjudicating authority.