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2018 (12) TMI 1164 - AT - Central ExciseCENVAT Credit - inputs in the form of HR/CR Coils and sheets - Held that:- Such inputs were used by the appellants in the fabrication of body on the chassis supplied by M/s Tata Motors and other customers. For fabrication of body, the supplier, M/s Tata Motors, had supplied the design and drawing to the appellants. This also contained a bill of materials required for the fabrication of such body - The investigation led to the conclusion that the appellants have shown consumption of materials in excess of materials as per bill of materials supplied by Tata Motors. This became the basis for the prima-facie conclusion of Revenue that the appellant has shown as consumed more materials than what was required for fabrication of chassis. Whether the Department is justified in ordering reversal of cenvat credit for inputs to the tune 1685.696 MT? - Held that:- As per the Scheme of the Cenvat Credit Rules, 2004, the credit on inputs is eligible in respect of goods used in the factory of the manufacturer of final product. It is not in dispute that the HR/CR sheets are inputs, which are required in the fabrication of body in the appellant’s factory. The credit also have been availed on the basis of invoices for which the payments have been made through proper Banking Channels. The investigation undertaken at the supplier’s end, has not brought on record any solid evidence to establish that the inputs were never received in the appellants’ factory. It is nobody’s case that any part of the inputs have been diverted clandestinely outside without use in the factory for manufacture. In view of the above, it cannot be concluded that the appellant has irregularly availed credit on inputs without use of the same in the manufacture. Two invoices for a total quantity of about 76 MT - Held that:- The credit for the same has since been reversed inasmuch as the material has been received/returned. Revenue is not justified in ordering reversal of cenvat credit - appeal allowed - decided in favor of appellant.
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