Case Law Details
Global Wool Alliance Private Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)
CESTAT Mumbai held that eligibility of benefit of notification no. 30/2004-CE dated 9th July 2004 owing to reversal of CENVAT Credit needs to be examined by lower authorities. Accordingly, matter restored back to original authority for fresh determination.
Facts- The appellant, as manufacturer of several articles of ‘wool’ and ‘polyester’, had been availing CENVAT credit of duty paid on several inputs deployed in production and had, at the same time been clearing export goods on payment of duty under the rebate procedure while availing the benefit of exemption provided for in notification no. 30/2004-CE dated 9th July 2004 for local clearances.
The first of the disputes, arising from two notices proposing recovery of Rs. 42,81,112 for April-July 2005 and of Rs. 32,32,131 for August-October 2005, concerns taking of credit of duty paid on inputs precluding entitlement to the benefit of notification no. 30/2004-CE dated 9th July 2004. Another dispute, arising from notice proposing recovery of Rs. 22,07,315 for the period from September 2008 to February 2009, pertains to entitlement to notification no. 30/2004-CE dated 9th July 2009 which was sought to be interpreted as intended only for assessees who lacked specified facility which to the appellant could not claim. The third issue is a consequence of refusal to entertain application of refund of Rs. 1,19,37,987 remitted as ‘deposit’for July 2004 to February 2009 during pendency of dispute.
Conclusion- Held that the factual aspects of eligibility –both by reversal of CENVAT credit as well as existence of facility for manufacture of ‘staple fibre’in the light of decisions of the Tribunal –have not been examined by the lower authorities. With the claim for refund restored to the original authority and with these two aspects having to be examined afresh, the issues would have to be go back for re- adjudication. Accordingly, the impugned order is set aside and all the disputes restored to the original authority for a fresh determination.
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