C.C.E. & S.T. Vs Reliance Industries Limited (CESTAT Ahmedabad)
Conclusion: In present facts of the case, while dismissing Revenue Appeals it was held by the Hon’ble Tribunal that it is impossible to maintain separate account in respect of Input and input services received and used in the manufacture of LPG, as there is no intention to use the particular input and input services in a particular quantity used for manufacture of LPG. Further, it was also held that CENVAT Credit is also admissible in respect of the amount of inputs contained in any of the waste, refuse or by-product.
Facts: The respondents are engaged in the manufacture of excisable goods viz. Motor spirit, High-speed Diesel Oil, LPG etc of the Central Excise Tariff Act, 1985. The respondents are also availing Cenvat Credit of duty paid on input, capital goods and input services in terms of the provision of Cenvat Credit Rules, 2004. They have reversed /paid Cenvat Credit under Rule 6(3) of Cenvat Credit Rules,2004 for the period from April 2015- March 2016, attributed to excisable goods viz. LPG removed without payment of duty under Domestic LPG Subsidy Scheme. Subsequently the respondents filed an application for refund to Large Taxpayer Unit (Mumbai) of Cenvat Credit reversed/paid for LPG under Rules 6(3) of Cenvat Credit Rules, 2004.
The Deputy Commissioner of Central GST DIV1 Jamnagar vide letter dated 20.02.2018 rejected the refund claim. Then, the Learned Principal Commissioner (Appeals) in Orders in Appeal set aside the Order in Original and allowed the appeals. Therefore, the present appeals were filed by the Revenue before the Hon’ble Tribunal.
