Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 980 - CESTAT NEW DELHIInputs cleared as waste and scrap – Not used in the manufacture of goods - Cenvat credit found short to be reversed – Held that:- The invoices mentioned the clearances as waste/scrap, the fact remains that these are the Cenvat credit availed inputs which had been cleared as such, without being used in manufacture for the reason the same had become obsolete - the clearances of obsolete inputs have to be treated as the clearances of cenvated inputs, as such, and the amount payable in respect of the same would be governed by the provisions of Rule 3 (4) of Cenvat Credit Rules in force at that time - Following EICHER TRACTORS Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR [2005 (9) TMI 340 - CESTAT, NEW DELHI] - During the period of dispute when an assessee cleared Cenvat credit availed inputs as such, he was required to reverse the credit equal to the duty of excise on the basis of assessable value as had been determined by the original manufacturer at the time of removal of the goods i.e. the credit originally taken, not the duty on the transaction value at the time of sale of the Cenvat credit availed inputs. The liability of the assessee at the time of removal of the Cenvat credit availed inputs as obsolete inputs or waste, which are nothing but the inputs cleared as such without having been used, would be the Cenvat credit originally taken – Thus, the duty demanded is correct - As regards, the demand of credit on the inputs found short, the same has also been correctly upheld on merits as these inputs have not been used in manufacture. Invocation of Extended Period of Limitation – Conflicting decisions – Held that:- The appellant have paid the amount strictly going by the wordings of Rule 3 (4) during the period of dispute, according to which on removal of cenvated inputs as such, an amount equal to duty on the transaction value was payable – With regard to the issue, there were conflicting decisions and for this reason – Following Continental Foundation Joint Venture vs. CCE, Chandigarh - I [2007 (8) TMI 11 - SUPREME COURT OF INDIA ] – when there is scope for entertaining doubt on account of conflicting judgments of the Tribunal, extended period under proviso to Section 11A (1) cannot be invoked – Thus, the short payment of the amount payable under Rule 3 (4) of the Cenvat Credit Rules was a deliberate act on the part of the assessee - the longer limitation period in the case is not invokable - during visit of the audit team, all the information had been made available by the assessee on the basis of which only the Department had detected this short payment and subsequently all the information for quantification of the duty has been furnished by the appellant - the extended period is not invokable - order is not sustainable on limitation. – Decided in favour of assessee.
|