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2011 (4) TMI 890 - CESTAT, AHMEDABADTransitional provisions allowing deemed modvat credit - grey fabrics lying in the stock - Held that:- Commissioner (Appeal) has examined the documents, wherein it was clearly stated that the goods were being sent to the process houses on payment of duty - it also stands recorded by the Commissioner (Appeal) that the processing houses cleared the processed fabrics on payment of duty, on behalf of the assessee. The said fact does not stand disputed by the Revenue in their memo of appeal. Revenue is not disputing the fact that the goods were sent to the job workers on payment of duty, in which case, it can be safely concluded that the deemed modvat credit so availed by the assessee stands reversed at the time of clearances of the grey fabrics. In such a scenario, the confirmation of the demand by denying them the credit, which already stands reversed by way of payment of duty at the time of clearance of grey fabrics, would neither be warranted nor justified. The processed fabrics stand exported or not looses its relevance, once it is admitted that processing houses have paid the duty on the processed fabrics - Decided in favour of the assessee
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