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2022 (6) TMI 158 - CESTAT AHMEDABADCENVAT Credit - inputs issued for production lying in shop floor but not used for the production and the same was destroyed in fire - remission of duty granted - HELD THAT:- The impugned order that the Learned Commissioner has granted the remission of duty in respect of Goods which is in work in progress. It is also not in dispute that the input in question had been issued for production and the same was lying on the shop floor. The same was admitted by the Commissioner in his order. The reason for not granting the remission is that even though the input was issued for production and lying on shop floor but the same was in form of input as such. Therefore, it was contended that the same was not used in the production. Accordingly, the remission was not granted. it is found that even though the inputs were not put to use in the production but the input were issued for the production and was in the progress of use in the manufacturer of final product. Once the input has been issued for the production and lying on shop floor. The same should be treated as work in progress. Consequently, the demand of Cenvat Credit cannot be made. It can be seen that the facts in that and present case is absolutely identical that though the input was not used and issued for production, the demand of Cenvat Credit thereon was set aside - the demand of Cenvat Credit in respect of inputs issued for production and lying in shop floor is not sustainable - appeal allowed - decided in favor of appellant.
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