2018 (3) TMI 1008 - AT - Service Tax

CENVAT credit - capital goods not sold as scrap - Held that - These documents are undoubtedly relevant to arrive at proper conclusion on this issue and, therefore, need to be examined first by Ld. Commissioner (Appeals). Besides, the findings of the Commissioner (Appeals) are very terse and restricted to simply endorsing the order of the adjudicating authority without giving any kind of analysis on the submissions of the appellant made before him and the case laws cited by the appellant. Such an order, which lacks judicial analysis of the contentions of the appellant, does not do justice to any of the sides. Hence, the matter requires to be re-adjudicated by the Ld. Commissioner (Appeals), who should give proper findings on averments and documentation furnished by the appellant in their defence. Utilization of excess Cenvat credit of basic custom duty - Held that - The appellant had not shown the Cenvat credit of BCD, CVD and Cenvat duty separately in their register. On this issue too, the Ld. Commissioner (Appeals) has given no finding at all in his order and simply upheld the order of the adjudicating authority - matter requires reconsideration. Appeal allowed by way of remand.

Summary

Issues:
1. Availment of Cenvat credit on capital goods not sold as scrap.
2. Utilization of excess Cenvat credit of basic custom duty.

Analysis:

Issue 1: Availment of Cenvat credit on capital goods not sold as scrap
The appellant imported hydraulic presses and accessories in 2008, later selling them as scrap in 2010. The Revenue suspected diversion of goods and sought recovery of Cenvat credit. The appellant argued discrepancies in weights of machines sold and imported, supported by invoices and documents. The department relied on statements and lack of funds for machine repairs to dispute the scrap claim. The Tribunal found crucial documents not submitted before the Commissioner (Appeals), necessitating re-adjudication. The Commissioner's order lacked analysis, requiring a detailed review of submissions and documentation.

Issue 2: Utilization of excess Cenvat credit of basic custom duty
The allegation involved the appellant's excess Cenvat credit on BCD, additional customs duty, and customs cess. The appellant's failure to separately show Cenvat credit in registers was highlighted. The Commissioner (Appeals) failed to provide any findings on this issue, merely upholding the adjudicating authority's decision. The Tribunal deemed a re-examination necessary, directing the first appellate authority to reconsider the matter, analyze submissions, and address relevant case laws.

In conclusion, the appeal was disposed of by remand for further review and detailed analysis by the respective authorities, emphasizing the need for comprehensive assessments on both issues raised in the case.