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2014 (4) TMI 646 - CESTAT NEW DELHIReversal of CENVAT Credit - Whether, a manufacturer of final product, who procured inputs and availed MODVAT credit thereon, was entitled to remove the inputs as such, without reversal of the credit or payment of equivalent amount of duty, to a 100% EOU under CT-3 certificate in terms of Notification No. 1/95 – Held that:- removal of inputs by the recipient without reversal of credit to 100% EOU does not satisfy the condition of the notification which requires direct procurement from the factory of manufacture. The Bench observed that the said condition is not a procedural condition but a substantive and needs to be fulfilled before the benefit of the notification can be extended. Ld. Advocate submits that the notification considered by the Larger Bench was 1/95-C.E. whereas the notification involved in the present proceeding is 22/2003-C.E. However, he fairly agrees that the condition involved in the past notification as also in the present notification is identical - no prima facie case in favour of the appellant and as no financial hardship stands pleaded - Following decision of LAKSHMI AUTOMATIC LOOM WORKS LTD. Versus COMMR. OF C. EX., TRICHY [2008 (10) TMI 57 - CESTAT CHENNAI] - Conditional stay granted.
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