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2009 (1) TMI 226 - CESTAT, AHMEDABADJob Work – Cenvat Credit – Period of limitation - The appellants were sending zinc to smelters/converters for converting it into alloy and the smelters were adding 4 to 5 per cent of aluminium along with the magnesium and copper at their end. - Thereby the job worker retained the quantity of the zinc equal to the quantity of other materials added by them for converting virgin zinc to zinc alloy - On this basis it was found that the appellants availed excess amount of MODVAT credit in respect of zinc to the extent of 3% after allowing 1.5% as burning loss and excess credit availed thus came to Rs.1,42,535/- during the period from August 1989 to September 1993. – held that - the appellants did not derive any extra benefit by following a wrong procedure. Since the deemed credit on aluminium was higher than zinc, the appellants could have got higher amount of CENVAT credit if they were to follow proper procedure – on the issue of period of limitation department failed to prove that the facts were not know to is – demand set aside.
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