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2015 (12) TMI 1395 - AT - Central ExciseDenial of CENVAT Credit - No manufacturing activity is done - Held that:- Commissioner (Appeals) has allowed the benefit to the respondent on the ground that once the duty has been paid on the final product, the same should be treated as reversal of the ineligible credit taken on the inputs and there is no requirement for insisting the assessee again to pay/ reverse the cenvat credit. I find that the observations of the Ld. Commissioner (Appeals) are in conformity with Rule 3(5) of the Cenvat Credit Rules, 2004, which provides that in case of removal of inputs as such from the factory, the manufacturer of final products shall pay an amount equal to the credit taken in respect of the inputs. Further, I find that the dispute in the present case has arisen because of the fact of taking cenvat credit on the disputed inputs used for conversion of the final product. Assuming that no credit has been taken for the activities not amounting to manufacture then there was no scope for payment of any Central Excise Duty on removal of final product. However, since the final product has suffered duty, reversal of credit taken by the Respondent on the inputs will not result in any loss of Revenue to the Government exchequer. - no infirmity in the impugned order - Decided against Revenue.
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