Commissioner of CGST & Central Excise Vs Kothari Sugars and Chemicals Ltd. (Madras High Court)
Madras High Court held that denial of cenvat credit on capital goods due to non-production of User Test Certificate not justifiable since revenue has never doubted over the utility or usage of the capital goods. Thus, writ appeal of revenue dismissed.
Facts- The respondent Kothari Sugars and Chemicals , is a manufacturer of sugar and molasses falling under Chapter sub-heading 1701-1190, 1703-1000 of the Central Excise Tariff Act 1985. The respondent has availed CENVAT Credit for the capital goods used in establishing a captive power plant of the respondent and the said availing of Cenvat Credit, according to the Revenue was wrongly availed by the respondent / assessee, thereby show cause notices were issued covering from the period 2008 to 2015 on various dates.
Notably, writ court allowed the writ petition by order dated 28.06.2023. Pursuant to the said order passed by the writ court, dated 28.06.2023, the writ petitioner approached the officer concerned as directed by the writ However, during the hearing, the Revenue, i.e., the first respondent in the writ petitions insisted upon the petitioner to produce the User Test Certificate, in short (UTC), as in the earlier case in respect of M/s. EID Parry (India) Ltd., the officer concerned had passed orders on behalf of the Revenue only on the basis of User Test Certificate, therefore, the User Test Certificate shall also be filed by the present writ petitioner.
