Case Law Details
Tata Steel Ltd. Vs CCEx. & S.Tax (CESTAT Kolkata)
The issue under consideration is whether the appellant, Tata Steel, was entitled to avail option under Rule 6(3)(ii) of the Cenvat Credit Rules?
In the present case, the Range Superintendent, raised a dispute that since the appellant had deposited specified amount equal to 10% of the value of the exempted goods for April, 2008, it had already exercised and availed option in terms of Rule 6(3)(i) of the Cenvat Credit Rules for the current financial year 2008-09 and hence could not withdraw the same and exercise option in terms of Rule 6(3)(ii) of the Cenvat Credit Rules.
CESTAT states that the correspondence on record of the appellant with Range Superintendent exchanged during the period May 2008 to June 2008, clearly establishes that the appellant had never exercised at any point of time during the period 2008-09 the option in terms of Rule 6(3)(i) of the Cenvat Credit Rules prior to May 2008. The Commissioner has therefore erred in holding that it is on record that the appellant had exercised the option under Rule 6(3)(i) of the Cenvat Credit Rules in the instant case. There is no document disclosed either in the show cause notice or in the impugned order which evidences exercising of such option by the appellant. Hence, it is conclusive that there has been due compliance by the appellant of the requirements under rule 6(3) and (3A), including the procedure laid down therein and the appellant has legally and validly availed the option in terms of Rule 6(3)(ii). The Commissioner has therefore erred in holding that the appellant had not fulfilled the conditions of procedure laid down in Rule 6(3) and Rule 6(3A) of the Cenvat Credit Rules and that the appellant was not entitled to avail option under Rule 6(3)(ii) of the Cenvat Credit Rules. Therefore, CESTAT hold that the impugned order of the Commissioner is unsustainable and is liable to be set aside. The amount confirmed thereby against the appellant and the penalties imposed also cannot be sustained.
FULL TEXT OF THE CESTAT JUDGEMENT
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