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2023 (3) TMI 1478 - AT - Central ExciseCENVAT Credit - removal of inputs can be said to be trading of goods or not - non-payment of 6% amount on value of electricity supplied to the MSEDCL for period from Sept. 2013 to June 2014 - HELD THAT:- Undisputedly EDC is an input for the appellant and they could have cleared the same on reversal of credit taken on the said inputs as per Rule 3 (5) of the Cenvat Credit Rules, 2004. Such removal of the inputs cannot be said to be trading in the inputs and the clearance of inputs against which the appellants have taken the credit need to be dealt in terms of the said rule 3 (5) and not in the terms of Rule 6, ibid. In case of COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH VERSUS PUNJAB STEELS [2010 (7) TMI 252 - PUNJAB AND HARYANA HIGH COURT], Hon'ble High Court held that Once the rule-making authority has defined the terms specifically and used the same in different provisions consciously, the argument of learned counsel for the Revenue that merely by analogy even if in one provision both the terms have been used, the same should be read in the other provision as well, where it has not been specifically mentioned, has no legs to stand, as the tax cannot be levied merely by inference or presumption. There are no merits in the impugned order whereby the reversal has been sought to be made in terms of the Rule 6 of the CENVAT Credit Rules, 2004 by treating such removals to be trading in inputs. It is also settled position in law as per the following decisions that the substantial benefit of proportionate reversal should not be disallowed to the appellants just for reason of procedural irregularities such as non filing of prior declaration or intimation - the demand raised under Rule 6(3)(i) on the ground that the appellants have not filed declaration under Rule 6(3)(ii) read with Rule 6(3A) of CCR, 2004 is erroneous. The matter needs to be reconsidered by the original authority for determination of the amount to be reversed against the electricity wheeled out to MSEDCL against a price, by application of the formula as prescribed by Rule 6 (3) (ii) read with Rule 6 (3A) - Appeals is allowed and the matter remanded back to original authority to re-determine the amounts to be reversed on the electricity wheeled out. Appeal allowed by way of remand.
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