Case Law Details
Indore Treasure Market City Pvt. Ltd. Vs Commissioner, CGST (CESTAT Delhi)
We turn our attention to the other issues like time bar and availability of credit to the appellant. The appellant submits that it had been regularly filing the ST-3 Returns and as such nothing was suppressed by it so as to invoke of the extended period.
On the other hand, learned Authorized Representative submits that there was no mention of CENVAT credit in the Returns filed till September 2009 and an opening balance has been shown in the Returns filed for the period October 2009 to March 2010.
This contention of Revenue appears to be factually incorrect. The learned Counsel for the appellant has demonstrated that during the Audit conducted during 2007-08, well before the issuance of Show Cause Notice, the credit of around Rs.4.5 crores was noticed by the Audit and explanation of the appellant was called for. The appellant explained the same to the Authorities. The contention of the Department is that the CENVAT credit has been shown for the first time in 2010. On the one hand, Revenue accuses that the appellant availed ineligible credit of Rs.10.15 crores and proceeds to demand the same whereas on the other hand, it avers that no documents like invoices etc. were produced to establish the amount of credit admissible. We find that Credit Rules imposed certain conditions for allowing credit in terms of Rules 4 & 9 and cast certain obligations upon the assessee in terms of Rule 6. The quantum of admissibility of credit depends on satisfying the conditions imposed therein and the discharge of obligations. In such circumstances it is not possible to quantify the admissible credit at this juncture. For this limited purpose, the issue needs to be remanded to the Adjudicating Authority.
In view of the above, we set aside the impugned order and remand the issue to the adjudicating authority for quantifying the credit admissible. The appellant shall submit all the evidence it would like to rely upon for the purpose of availing credit claimed by it within two weeks of receipt of this order. We also order that the Adjudicating Authority shall examine all the evidence in form of records/documents/ certificates as may be submitted by the appellant and allow the credit, as found admissible, to the appellant and pass an order preferably within six weeks of the submission of such evidence.
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