Case Law Details
Shakambari Overseas Traders Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT find that manufacturer has taken entire credit in respect of inputs used in or in relation to the manufacture of the final products. It is seen that the suppliers are registered Central Excise dealers. The invoices under which the consignment was received by the Appellant is not in dispute. The said invoices clearly indicate duty-paid character of the said goods. It is also undisputed that the said inputs were received in the factory of the Appellants and consumed therein. It is the case of the Revenue that inputs being of prime quality the Appellants could not have used the same for melting. I find that there is no restriction in the CENVAT Credit Rules that the Appellants should not use the prime quality materials for the manufacture of final products. As long as there is no dispute regarding the receipt and consumption of the inputs, duty-paid character thereof, the benefit of the CENVAT Credit cannot be denied to the Appellant.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The Appellant is engaged in the manufacture of non-alloy ingot and industrial oxygen gas.
2. The facts of the case in brief are that a Show Cause Notice dated 30th April, 2010 was issued to the Appellant alleging irregular availment of CENVAT Credit of Rs.24,59,842/- availed against 1372.35 MT of TMT Bars (cutting), Tore Steel/MS Tore (cutting) during the period from April, 2009 to October, 2009. It is the case of the Department that the above mentioned items of steels, cannot be treated as any input used for the manufacture of their finished goods i.e. MS Ingot. The Show Cause Notice also mentioned that no prudent manufacturer can take into use a product of higher value to manufacture a lower valued product in as much as TMT bars cannot be treated as any input for manufacture of MS Ingot. The Adjudicating authority confirmed the demand of CENVAT Credit of Rs.24,59,842/- and also imposed penalty of an equal amount under Rule 15(1) of CENVAT Credit Rules, 2004. On appeal, the Ld. Commissioner(Appeals) dismissed the Appeal before him. Hence the present Appeal before this Tribunal.
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