2017 (9) TMI 608 - AT - Central Excise

Jurisdiction - CENVAT credit - input - sulphur powder received on payment of duty - Held that - It is not open to the revenue officers having jurisdiction over the purchaser to question the assessment made by the officers having jurisdiction over the suppliers - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against demand of credit on sulphur powder received by the appellants.

Analysis:
The appellant, a company, appealed against the denial of credit on sulphur powder received from a supplier. The appellant argued that the supplier had paid duty on the product, which was used as an input for manufacturing the final product. The appellant contended that the process of drying, pulverising, sieving, and packing the sulphur did not amount to manufacture. The Commissioner (Appeals) had previously dropped similar demands for the appellant, which were accepted by the revenue. The appellant relied on various case laws in their favor. However, the Commissioner (Appeals) in the impugned order referred to a Board's circular dated 14th Jan., 2010, which stated that if the process undertaken does not amount to manufacture, the assessee should not pay duty or avail credit on inputs. The circular advised approaching the Central Govt. for regularisation of the credit availed. The Commissioner (Appeals) did not decide on the admissibility of credit but advised the appellant to follow the circular.

The appellate tribunal noted that the subsequent orders of the Commissioner (Appeals) were in favor of the appellant and had not been challenged. It was emphasized that the revenue officers could not question the assessment made by officers having jurisdiction over the suppliers. The tribunal found merit in the appeal and allowed it. The appellant was advised to approach the Central Govt. for regularisation of the cenvat credit availed. The judgment was pronounced in court on 17/08/17.