Case Law Details
M. B. Control & Systems Pvt. Ltd. Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT finds that the Appellant has provided evidence of maintaining separate accounts and not claiming Cenvat Credit for inputs used in manufacturing exempted goods. However, the lower authorities failed to verify the documents before reaching a conclusion. Therefore, the Appellant is granted another opportunity to present the necessary documents to the Adjudicating Authority. The Appellant must submit RG23A Part 1 & Part 2 Books, photocopies, statements, and invoices related to inputs used for exempted goods. The Adjudicating Authority is instructed to thoroughly verify these facts and issue a well-considered order within four months.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The Appellant is a manufacturer of Control Panel & Spare Parts thereof falling under CETSH No.85389000 and some other items. They claimed they have cleared the inputs on payment of Excise Duty and they also supply their finished goods to Indian Navy. The Appellants are also manufacturing and clearing the goods under Nil Excise Duty availing the benefit under Notification No.10/97-CE dated 01.03.1997 and Notification No. 64/95 dated 16/3/1995. During the period 2009-10 to 2012-2013, the Department conducted investigation and found that they were not maintaining separate records for the inputs being used in the manufacture of dutiable goods and the exempted goods. The Appellant on being pointed out about this mistake, paid the amounts of demand and closed the issue.
2. After this, the Appellant submits that they have started maintaining separate records for the inputs being used in the manufacture of dutiable and exempted goods. As per the new system of maintaining separate accounts, they are not taking the Cenvat Credit for the inputs used in the manufacturing of goods during the period 2013-14. The Department officials visited their unit on 03/02/2014 and asked them to submit documentary evidence for maintaining separate accounts for dutiable and exempted goods. The Appellant submitted that in view of the accident sustained by the concerned official, they were not in a position to produce the record immediately but they will do so after some time. The Appellant vide their letter dated 5/4/2014 (submitted to the Department on 29/4/2014) gave the complete details of inputs on which no Cenvat Credit was taken by them. They also enclosed the copies of the invoices.
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