Case Law Details
Rishi Kiran Logistics P Limited Vs Commissioner of Central Excise & Customs (CESTAT Ahmedabad)
Introduction: This article discusses the recent ruling by CESTAT Ahmedabad in the case of Rishi Kiran Logistics P Limited vs. Commissioner of Central Excise & Customs. The appeal involves the determination of Cenvat Credit eligibility for SS Pipes, Valves, and other goods used for fabrication and construction. The court remands the matter for reconsideration based on new judgments.
Analysis: The central issue in this case is whether the appellant is entitled to Cenvat credit for SS Pipes, SS/CR Coils, MS Angles, Plastic Hose assembly, various types of Valves, and Valve Automation system, considering them as capital goods and input. These goods were used for fabrication, erection, and construction of a storage tank, and the appellant utilized Cenvat credit for payment of service tax. However, the Revenue disallowed the credit, arguing that the tank is not movable goods, thus not eligible for Cenvat credit under Rule 3(1).
The appellant cites various decisions by the Tribunal and other courts in support of their claim. They contend that the issue is no longer res-integra and that the Commissioner (Appeals) had allowed Cenvat credit on similar goods in their own case. The appellant alleges a violation of the principles of natural justice and a non-application of mind by the Adjudicating Authority, as relevant submissions and precedents were not considered in the impugned order.
The court agrees with the appellant’s submission and remands the matter to the Adjudicating Authority for reconsideration. They emphasize that the Authority must take into account the subsequent judgments on identical issues and reevaluate the case’s facts in light of those decisions.
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