9911796707
TMI Blog2018 (8) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rules 2 & 3 (5B) of Cenvat Credit Rules, 2004 inasmuchas they failed to reverse Cenvat Credit of Rs. 5,08,980/- attributable to Coal and Iron Ore Fines on 13/10/2013 on which the assessee had taken credit of CVD and Service Tax paid on inward freight, which were not utilized in or in relation to manufacture of excisable final products. The Show Cause Notice proposed to demand Rs. 5,08,980/- along with interest and for imposition of penalty on account of alleged suppression of facts. The Show Cause Notice also proposed to demand Rs. 8,42,255/- on account of quantities of Coal, Iron Ore and Iron Ore Fines removed as such during 2014-15 along with interest and for imposition of penalty. The Show Cause Notice also alleged wrong availment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty on the amount of Rs. 1,50,748/-. Regarding the fourth issue of input credit of Cement (Rs.37,988/-) and on H.R. Coil (Rs.18,560/-), the Ld. Adjudicating Authority has recorded that the assessee has reversed the credit taken on Cement along with interest. However, penalty of equal amount of Rs. 37,988/- and Rs. 18,560/- is imposed. Regarding the fifth issue, the Adjudicating Authority has observed that the assessee submitted STTG Certificates along with Railway Receipts amounting to Rs. 16,43,914/- and held that the assessee has correctly availed credit to the tune of Rs. 16,43,914/- and confirmed the demand of Rs. 66,668/- along with interest and imposed penalty of Rs. 66,668/-. 3. On appeal, the Ld. Commissioner (Appeals) upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reversal only if the inputs are written off in full or any provision to write off in full has been made in the books of Accounts. He made the Bench go through Para 26 and 30 of the Adjudication Order wherein the Ld. Adjudicating Authority has held that Cenvat Credit Rules, 2004 do not seek to reverse the Cenvat Credit availed on input service. 7. The Ld. Consultant strongly argued that since the credit availed on inputs, destroyed in natural calamity which includes Cyclone, need not be reversed as it does not amount to removal of goods as such. It is his submission that the assessee cannot be made to reverse the amount of Cenvat Credit availed on inputs destroyed in Cyclone by applying provisions of Rule 3 (5) of Cenvat Credit Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise Duty. 8. The Ld. DR reiterates the orders of the Lower Authorities. 9. Heard both sides and perused the appeal records. 10. I find that the present appeal has been filed to contest the following demands:- Ground No. Particulars Demand (Rs.) Penalty (Rs.) 1-2 Loss of Inputs due to Cyclone 2,81,555 2,81,555 3-5 Cenvat Credit on Items used in Manufacture of HR Coils 18,560 18,560 6 Cenvat Credit not supported by valid STTG Certificate 66,668 66,668 Total 3,66,783 3,66,783 (i) Regarding the first issue of loss of inputs due to cyclone, I find that on 13/10/13, several parts of India including Bokaro (Jharkhand), where the manufacturing plant of the assessee is situated, wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled with the Department. Accordingly, credit availed on inputs destroyed in natural calamity including cyclone, need not be reversed as it does not amount to removal of input as such. Inputs lost during the process of manufacture are not required to be considered for reversal of credit. (ii) Regarding H.R. coils used in manufacture of capital goods, this Tribunal in the assessee's own case in appeal No. E/75816/2017 vide final Order No. FO/78687/2017 dated 27/12/2017, has allowed the credit on H.R. Coils used in the manufacture of capital goods. In the present case, the assessee had furnished details of input (H.R. Coils) used in the manufacture of Klin/Stroage Tank. Therefore, there is no reason to disallow Cenvat Credit availed on H.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
