Case Law Details
CCE Vs Hindalco Industries Ltd. (CESTAT Ahmedabad)
CESTAT Ahmedabad has upheld the Commissioner (A) Order allowing Cenvat credit of the duty paid on provisionally assessed bill of entry in a case where the final assessment revealed that less duty was payable. The Tribunal in this regard relied upon number of case law and observed that it is settled that even though certain amount of excise duty/service tax is not payable as per law but the manufacturer/service provider pays it, Cenvat Credit cannot be denied at the recipient end only on the ground that the same was not payable by the manufacturer/service provider.
FULL TEXT OF THE CESTAT JUDGEMENT
The brief facts of the present case are that the appellant have availed cenvat credit in respect of CVD paid on imported raw-material namely copper Concentrates based on provisionally assessed bills of entry. Since the value of the goods under Customs Act is based on copper Concentrate the bill of entry was initially provisionally assessed and on final assessment the value was determined on lower side, therefore, the duty paid on the basis of provisionally assessed bills of entry was found in excess as compared to the actual duty playable assessed finally. The case of the department is that the correct value of the goods is the value which was finally assessed, therefore, the respondent were not entitle for the cenvat credit paid in excess on the basis of provisionally assessed bills of entry. The department also contended that the amount of duty paid on the provisionally assessed bills of entry is deposit and not the duty actually payable as per the finally assessed bill of entry ,therefore, CVD paid as per provisionally assessed bill of entry is not admissible for cenvat credit to the appellant. The adjudicating authority dropped the proceeding of the show cause notice. Being aggrieved by the impugned order Revenue filed the present appeal.
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