2024 (9) TMI 382 - AT - Central Excise

CENVAT Credit - non-maintenance of separate accounts of inputs and input services used for manufacturing of exempted goods and rendering of exempted service for the period 1st April 2009 to 31st March 2013 - HELD THAT - The impugned order is woefully inadequate in not having examined the facts in the notice for veracity in the light of submissions of the noticee. Furthermore, as has been pointed out by Learned Chartered Accountant, it has been held by the Tribunal in M/S. ACCURA VALVES PVT. LTD. VERSUS CCGST CE, NASHIK 2018 (12) TMI 428 - CESTAT MUMBAI , as also in EATON FLUID POWER LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, PUNE-I 2023 (12) TMI 172 - CESTAT MUMBAI , that payment of amount as prescribed in rule 6(3) cannot be forced upon an assessee. It is now settled law that reversal of credit proportionate to that borne by the value of exempted goods and/or exempted service to value of total goods and/or exempted services suffices for CENVAT Credit Rules, 2004. The adjudicating authority had failed to take note of the facts to which the settled law were be applicable. The impugned order is set aside - matter remanded back to the original authority for a fresh decision based on submissions of the appellant and the law as settled. Appeal allowed by way of remand.

Summary

The Appellate Tribunal CESTAT Mumbai heard the case of M/s Ciron Drugs & Pharmaceuticals Pvt Ltd regarding recovery of non-entitled CENVAT credit. The impugned order confirmed recovery solely based on rule 6 of CENVAT Credit Rules, 2004. The Tribunal set aside the order and remanded the matter for a fresh decision based on submissions and settled law. (Order pronounced on 05/09/2024)