Case Law Details
GEMSCAB Industries Ltd. Vs Commissioner Central Goods (CESTAT Delhi)
In view of the observed admission and settled law, the question of adjudication is answered in negative holding that CENVAT Credit cannot be denied on the ground that the supplier was not liable to pay the duty on the goods supplied. Also it is observed that the finding of Commissioner (Appeals) about M/s. Shiv Industries that the product supplied by them was exempted from payment of duty is based merely on the letter from the Jurisdictional Incharge. There is no further investigation about the manufacturing process of M/s. Shiv Industries. Said letter of the concerned officer is also silent about it. There is no discussion in the impugned order about any mention in the letter of Jurisdictional officer about manufacturing process of M/s. Shiv Industries and about using the scrap for manufacture of their ‘PVC Filler Hollow’. Nor there is any iota of evidence about the manufacturing process of six other supplier. In the absence thereof, I hold that the Revenue has failed to discharge its onus. Otherwise also allowing the availment of Credit on the same product supplied by other suppliers and denying the credit with respect to one single supplier amounts to disparity. There is no reasonable justification apparent in the order. The case law relied upon by the Adjudicating Authority below is not relevant to the facts and circumstances of the present case. The order under challenge is accordingly, hereby set aside. Consequent thereto, appeal stands allowed. Consequential benefits to follow.
FULL TEXT OF THE CESTAT DELHI ORDER
Present appeal has been filed to assail Order in Appeal No. 333/2019 dated 12.12.2019 passed by the Commissioner (Appeals) disallowing the Cenvat Credit amounting to Rs. 4,67,165/- with interest and the penalty of same amount. The relevant factual matrix in brief is as follows:
2. The appellant is engaged in manufacture of electric wire and cables and are availing the facility of CENVAT Credit under CENVAT Credit Rules, 2004 ( CCR hereafter). Initially the returns filed by M/s. Shiv Industries were scrutinised by Superintendent, Central Excise and Service Tax Range and it was observed that M/s. Shiv Industries have cleared the goods ‘PVC Filler Hollow’ on payment of duty and have wrongly passed on the CENVAT Credit despite the fact that said PVC was manufactured by PVC waste and scrap and which was unconditionally exempted under Notification No. 12/2012 from payment of Central Excise duty.
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