Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 194 - AT - Central ExciseCENVAT credit on inputs and input services used in manufacture - Activity amounted to manufacture - ‘roof bolts’ and ‘W straps’ prepared and cleared by the respondents for use in mines - Valuation - price variation clause - HELD THAT:- dispute whether the activity undertaken by the appellant amounts to manufacture or not the same has been settled by this Tribunal vide an order [2010 (2) TMI 395 - CESTAT, BANGALORE] The activity undertaken by the appellant amounts to manufacture, therefore, in terms of Rule 3 of CENVAT Credit Rules 2004, the appellant is entitled to take CENVAT credit on inputs and input services used in manufacturing of the said excisable goods. Admittedly, the said benefit has not been granted by the adjudicating authority - Further, the appellant has been able to produce the tender document as well as their purchase agreement show that on escalation of prices of raw material, the price of finished goods is to be revised and duty is to be paid on higher price. In case the price of raw material falls, the appellant is entitled to claim less amount of the manufactured goods. Therefore, as per the said clause, as per price variation clause, the duty needs to be recalculated as per the amount received from the buyer towards supply of goods by the appellant. The same is required to be examined by the adjudicating authority. The matter is sent back to the adjudicating authority to calculate the demand after allowing CENVAT credit available to the appellant on inputs and input services used in the manufacture of the goods cleared by them and in terms of price variation clause - Penalty is not imposable - appeal allowed by way of remand.
|