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2015 (11) TMI 359 - AT - Central ExciseCENVAT Credit - suo moto re-credit of Cenvat credit which was reversed at the instance of Audit Team on GTA service - Held that:- As regard the admissibility of the Cenvat credit of GTA and in respect of invisible loss, as submitted by Ld. Consultant that the entire transportation was used for export of goods and invisible loss is during the process at the job worker’s end and in both the cases Cenvat credit should be allowed. I find that the lower authority has decided the issue merely on the point of suo moto credit and fact that the GTA in respect of credit was taken is whether for export or otherwise has not been verified. I am of the considered view that if Cenvat credit in respect of service tax paid towards GTA and said GTA used for export of goods, the place of removal stands extended up to the port of export and therefore transportation from factory to port of export is clearly covered by the term ‘up to the place of removal’ and if it is so, appellant is entitle for Cenvat credit. Cenvat Credit on invisible loss - Held that:- invisible loss unless and until it is proved that the goods were diverted so far it is invisible loss, Cenvat credit cannot be denied. Invisible loss is process loss on which Cenvat credit is admissible in terms of para 3.7 of Chapter 5 of Supplementary instruction of Central Excise manual The Cenvat credit admissible in respect of amount of input contained in waste, refused or by product. Similarly, Cenvat is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty. - provisions the quantity of input which shown as invisible loss has been used in or in relation to the manufacture of final product though the part of manufacturing has taken place at the job workers end. Therefore in view of the above clear instruction, if at all it is found that input used has been lost in the manufacturing process, either with the appellant or with the job worker of the appellant, credit should be allowed. However adjudicating authority has to verify quantum of input lost in the process. - since both the lower authority have not verified properly the admissibility of the Cenvat credit on the factual aspect, matter needs remand to the original authority - Decided in favour of assessee.
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