Case Law Details
M/s Sanwariya Tiles Pvt. Ltd. Vs CEC & CGST (CESTAT Delhi)
Both the appeals are being disposed of by a common order as the issue involved in both of them is identical
2. As per facts on record, the appellants are engaged in the manufacture of marble slabs out of the imported marble slabs. During the period prior to February, 2015, they were availing the benefit of small scale exemption Notification. The exemption limit of value of clearances was crossed by them in February, 2015 and as such in terms of provisions of rule 3(2) of Cenvat Credit Rules, 2004, they became entitled to avail cenvat credit of duty paid on the inputs lying in stock or in process or inputs contained in the final product lying in stock. There is no dispute about the said fact.
3. Accordingly, the appellant availed the credit of the inputs lying in stock, either as such or as contained in their final product on the date of crossing of their exemption limit. The said credit was availed on the basis of bills of entry vide which the raw material was imported by them. However, by the time the appellant crossed the exemption limit and started working under the cenvat scheme, the said bills of entry was more than six months old.
Revenue entertained a view that inasmuch as Rule 4(1) allowed availment of credit only within a period of six months from the date of issuance of the documents, the appellants were not entitled to avail the credit on the basis of more than six months old bills of entry. Accordingly, proceedings were initiated resulting in denial of credit to the appellant. The order of the original adjudicating authority was upheld by Commissioner (Appeals).
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