Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 200 - AT - Central ExciseCenvat credit for discharging duty on the inputs procured without payment of duty - revenue contended that, the duty on the fibre procured without payment of duty, but not used for the intended purpose, cannot be discharged for availing cenvat credit and also such duty discharged cannot be further availed as a credit by the appellant. - Held that:- Regarding the analysis of Rule 3 of Cenvat Credit Rules by Lower Authorities, we find reliance has been placed by the Revenue on Rule 3(4)(b), which states that an amount equal to cenvat credit taken on inputs, such inputs are removed as such or after being partially processed. As admitted by the lower authorities, in the present case, first of all, there is no clearance of inputs as such and hence the above said provisions have no application. The admitted fact is that the inputs have been procured without payment of duty and on failure of use of the same for the intended purpose, duty has to be discharged. Here, the duty has to be discharged by the appellant as a recipient of goods. In case if they procured the said inputs on payment of duty (without availing the exemption) then they would have discharged the duty and availed credit of the same based on duty paid document of the seller. Since the payment of duty on the inputs has to be discharged by appellant in the present case, in the absence of any specific bar, the appellants have utilized the cenvat credit available in the records for this purpose. We find no infirmity in such payment. The inputs having been used for the intended purpose of manufacture and clearance of dutiable final products, the credit of such payment is again available to the appellants. In view of the above analysis and also following the precedent decisions of the Tribunal, we set aside the impugned order and allow the appeals in favour of assessee
|