9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 626 - AT - Central ExciseQuantum of the reversal of CENVAT credit - Held that - When the dispute is regarding the quantum of the amount reversed, the impugned order is set aside and the matter is remanded to the original authority to ensure for 100% reversal of the CENVAT credit enjoyed by the appellant - appeal allowed by way of remand.
Issues: Appeal against Order-in-Appeal No: 51/2008 dated 22/08/2008, Dispute regarding quantum of reversal of CENVAT credit
In this judgment by the Appellate Tribunal CESTAT, Mumbai, the appellant, engaged in the manufacture of rubberized textile fabrics, filed an appeal against Order-in-Appeal No: 51/2008 dated 22/08/2008. The appellant had benefited from Notification No. 6/2000 dated 01/03/2000, which prohibited taking CENVAT credit on raw materials. However, the appellant used fuel for steam generation and availed CENVAT credit, which was subsequently reversed. The dispute centered on the quantum of the reversal of the amount, with the department contending for a 100% reversal of the CENVAT credit on inputs enjoyed by the appellant. Upon hearing both parties and reviewing the records, the tribunal noted the appellant's non-compliance with the condition of not taking CENVAT credit on raw materials as per the notification. The tribunal found that the appellant needed to reverse 100% of the CENVAT credit availed on the inputs. As the dispute revolved around the quantum of the amount to be reversed, the tribunal set aside the impugned order and remanded the matter to the original authority. The adjudicating authority was directed to ensure the 100% reversal of the CENVAT credit enjoyed by the appellant, providing a reasonable opportunity for the appellant to present its case and admitting fresh evidence if necessary. Consequently, the appeal filed by the appellant was allowed by way of remand, and the cross-objection was disposed of. The judgment emphasized the importance of complying with the conditions of notifications regarding CENVAT credit and the need for a thorough review of the quantum of credit reversal to ensure appropriate enforcement of the law.
|
