New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (10) TMI 844 - CESTAT MUMBAI

2015 (10) TMI 844 - CESTAT MUMBAI - 2015 (326) E.L.T. 205 (Tri. - Mumbai) - Denial of CENVAT Credit - Conversion of EOU to DTA Unit - Carry forward of unutilized CENVAT Credit - The entire case of the Revenue is that the amounts which have been carried forward after reversal of appropriate duty on the inputs lying in stock, finished goods and WIP, the balance credit lapses as per the provisions of sub-rule 3 of Rule 11 of Cenvat Credit Rules while it is the case of the appellant that they are el .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oducts on which duty liability arises. - from bare perusal of the sub-rule the same will apply only in a situation where final products are exempted and lying in stock. In our considered view the above sub-rule may not be applicable in the facts of this case which is not disputed that there is a discharge of Central Excise duty liability on the other finished products manufactured and cleared like aggregates, components & parts of tractors. - Decision in the case of Shree Baba [2014 (11) TMI 749 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appellants were holding the status of EOU and engaged in the manufacture of agricultural tractors and parts & components thereof. The appellant converted their EOU into DTA unit on 08.08.2011. On conversion of DTA unit, the appellant had discharged the applicable duties on the inputs in stock, inputs contained in finished goods and Work in Progress (WIP) as envisaged in the provisions due to the reason that being a EOU they have received inputs without payment of duty. After reversing / pay .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dit be not demanded with interest. Appellant contested the issue on merits. The adjudicating authority after following due process of law, did not agree with the contention raised by the appellant holding that the provisions of Rule 11 of Cenvat Credit Rules, 2004 will be attracted and the credit lying in balance when the appellant switched over from EOU to DTA need to lapse as the appellant's final product agricultural tractors were fully exempted with effect from 01.03.2006. 3. Learned Con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d the duty on inputs and capital goods and availed CENVAT credit and could not utilize the same as being an EOU. It is his submission that the Central Excise duty payable on inputs lying in stock, on finished goods and on WIP was calculated and paid as soon as debonding order was received and such payment of duty is not in dispute. It is his submission that provisions of Rule 11 of the Cenvat Credit Rules will be applicable only when the appellant is manufacturing exempted goods and not when var .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xcise duty and there is no exemption to these aggregates components and parts of tractors. He would rely upon the decision of the Tribunal in the case of Shree Baba Exports - 2015 (318) ELT 328 (Tri.Del). 4. Learned D.R. would read the findings recorded by the adjudicating authority in the impugned order and more specifically paragraphs 18 to 20. It is his submission that the main manufacturing activity of the appellant is agricultural tractors, aggregates and components & parts thereof may .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ewing authority in the case of Technocraft Industry (India) Ltd. for the proposition that on debonding any Cenvat credit that is carried over has to lapse and cannot be used. He would also rely upon the judgement of the Tribunal in the case of Bajaj Foods Ltd. - 2012 (280) ELT 281 (Tri. - Ahmd.) for the same proposition. 5. We have considered the submissions made at length by both sides and perused the records. 6. It is undisputed that the appellant herein had converted his unit from EOU to DTA, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.03.2006. 6.1 The entire case of the Revenue is that the amounts which have been carried forward after reversal of appropriate duty on the inputs lying in stock, finished goods and WIP, the balance credit lapses as per the provisions of sub-rule 3 of Rule 11 of Cenvat Credit Rules while it is the case of the appellant that they are eligible to utilize the amount for discharge of duty liability on other products manufactured by them. 6.2 We find from the impugned order that the adjudicating autho .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hich reads as under:- Sub-rule of Rule 11: (3) A manufacturer or producer of a final product shall be required to pay an amount equivalent to the CENVAT credit, if any, taken by him in respect of inputs received for use in the manufacture of the said final product and is lying in stock or in process or is contained in the final product lying in stock, if,- (i) he opts for exemption from whole of the duty of excise leviable on the said final product manufactured or produced by him under a notific .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or exported. 6.3 It can be seen from bare perusal of the sub-rule the same will apply only in a situation where final products are exempted and lying in stock. In our considered view the above sub-rule may not be applicable in the facts of this case which is not disputed that there is a discharge of Central Excise duty liability on the other finished products manufactured and cleared like aggregates, components & parts of tractors. The above said view, is fortified by the judgement of the Tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he inputs lying in stock or in process, or contained in the final products lying in stock on the date of exemption, and after deducting this amount from the Cenvat credit balance, if any, as on the date of exemption, if any Cenvat credit balance still remains, it shall lapse and the same shall not be allowed to be utilized for payment of duty on any goods whether cleared for home consumption or for export. In our view, this sub-rule would not apply when out of common Cenvat credit availed inputs .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version