Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (11) TMI 150 - CESTAT CHENNAICENVAT Credit - input services commonly used by the appellant in the manufacture of their own dutiable final products as well as in the manufacture of forgings which was cleared to M/s.TENGEL without payment of duty - non-maintenance of separate records - HELD THAT:- On perusal of the facts as brought out from the records, it is understood that goods cleared to the principal manufacturer has suffered duty at the hands of the principal manufacturer. This being so, the final product cleared by the appellant to the principal manufacturer cannot be considered as exempted goods. All the products cleared by the appellant viz. forgings are dutiable products and has suffered duty at the hands of the appellant or the principal manufacturer. Then, Rule 6 (3) does not come into application. The appellant is not liable to reverse the credit. The issue was considered by the Hon’ble Apex Court in the case of ESCORTS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI [2004 (8) TMI 106 - SUPREME COURT] wherein the Hon’ble Apex Court held that when the final product has been subject to duty, it cannot be said that intermediate product which is cleared without payment of duty is an exempted good for compliance with the provisions of Rule 57C of erstwhile Modvat Credit. Thus, the demand cannot sustain. The impugned order is set aside. Appeal is allowed.
|