CENVAT Credit eligible on Product Recall Policy expenses

Bhavani Industries Vs C.C.E. & S.T. Rajkot  (CESTAT Ahmedabad)

Bhavani Industries (Appellant) filed an appeal impugning Order No. OIA-RAJ-EXCUS-000-APP-023-2018-19 dated April 18, 2018 passed by Commissioner (Appeals) Commissioner of Central Excise, Customs and Service Tax, Rajkot (Respondent).

Issue: Eligibility of Central Value Added Tax Credit (CENVAT Credit) on Product Liability and Product Recall Insurance Policy.

The Appellant counsel relied on an erstwhile judgement [M/s. Bhavani Industries V/s. C.C.E. & S.T. Rajkot 2018 (10) TMI 626 CESTAT Ahmedabad] wherein the matter was adjudged in the favor of the Appellant.

The Respondent, as opposed to the contentions raised by the Appellant, reiterated the findings of the impugned order; wherein it was held that the expenses towards product recall policy expenses are not eligible for CENVAT credit.

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