The case involved a dispute over CENVAT Credit denial based on a ...

Tax credit granted! Circular advises against double benefits but doesn't deny credit. Tribunal rules in favor of legitimate credit.

Case Laws     Central Excise

June 28, 2024

The case involved a dispute over CENVAT Credit denial based on a board circular alleging undervaluation of assets and claiming dual benefits. The Circular merely advised informing the income tax department about claimed expenses to avoid double benefits. It did not mandate CENVAT credit denial. The Tribunal in a similar case ruled that legitimate CENVAT credit under CENVAT Credit Rules, 2004 is unaffected by income tax treatment. Consequently, the appellant was deemed eligible for CENVAT credit, and the earlier denial was overturned, allowing the appeal.

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