Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 600 - AT - Central ExciseConditional Exemption - Whether reversal of cenvat credit before utilizing would be amount to non availment of credit - benefit of exemption Notification No. 30/04-CE - composite mill manufactured cotton yarn from cotton and used the same within the factory for weaving of fabrics. - Held that:- Benefit of the exemption notification is subject to the condition that no duty credit that is taken but the assessee during November and December 2005 had taken Cenvat credit of ₹ 6,622/- in respect of certain inputs and during January to March 2006 had taken Cenvat credit of ₹ 2,753/- in respect of certain inputs. However, the Assessee s claim that this credit had not been utilised and had been reversed as soon as this irregularity was pointed out by the Department is not refuted by the Department. Since the credit taken was reversed without being utilised, in our view, the judgment of Hon ble Allahabad High Court in the case of Hello Minerals Water (P) Ltd. vs. Union of India (2004 (7) TMI 98 - HIGH COURT OF JUDICATURE AT ALLAHABAD) which is based on the Apex court s judgment in the case of Chandrapur Magnet Wires (P) Ltd. vs. CC, Nagpur (1995 (12) TMI 72 - SUPREME COURT OF INDIA) would be applicable to the facts of this case and the Assessee have to be treated as not having taken the Cenvat credit and would be eligible for the exemption benefit. In view of this, the impugned order denying the benefit of exemption Notification No. 30/04-CE and confirming the duty demand on this basis against the Assessee is not sustainable and the same is set aside. - Decided against Revenue.
|