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M/s. Jyoti Steel Industries Versus Commissioner of Central Excise, Thane-II

CENVAT Credit - suo moto re-credit of Cenvat credit which was reversed at the instance of Audit Team on GTA service - Held that:- As regard the admissibility of the Cenvat credit of GTA and in respect of invisible loss, as submitted by Ld. Consultant that the entire transportation was used for export of goods and invisible loss is during the process at the job worker’s end and in both the cases Cenvat credit should be allowed. I find that the lower authority has decided the issue merely on the .....

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credit.

Cenvat Credit on invisible loss - Held that:- invisible loss unless and until it is proved that the goods were diverted so far it is invisible loss, Cenvat credit cannot be denied. Invisible loss is process loss on which Cenvat credit is admissible in terms of para 3.7 of Chapter 5 of Supplementary instruction of Central Excise manual

The Cenvat credit admissible in respect of amount of input contained in waste, refused or by product. Similarly, Cenvat is not to be .....

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h the job worker of the appellant, credit should be allowed. However adjudicating authority has to verify quantum of input lost in the process. - since both the lower authority have not verified properly the admissibility of the Cenvat credit on the factual aspect, matter needs remand to the original authority - Decided in favour of assessee. - Appeal No. E/274/10 - Dated:- 29-6-2015 - Mr. Ramesh Nair, Member (Judicial) For the Petitioner : Shri S.K. Babaladi, Consultant For the Respondent : Shr .....

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envat credit in respect of outward transportation. During the audit of the appellants record by the EA 2000 audit, it was pointed out that the credit on outward transportation is not admissible and accordingly appellant debited Cenvat credit for an amount ₹ 2,64,967/-. Subsequently appellant in the month of March 2007 re-credited the same amount in their RG 23 Part-II account with remark that audit query is not acceptable to the assessee. Thereafter CERA has conducted the audit in the mon .....

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led refund claim under Section 11B. The adjudicating authority holding that suo moto credit is not allowed, confirmed the demand of ₹ 2,96,507/- and also demanded interest under Section 11AB, penalty of ₹ 10,000/- under the provisions of Rule 15(1) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 was also imposed. Aggrieved by the order-in-original dated 31/3/2008 the appellant filed appeal before the Commissioner (Appeals) and the Revenue has a .....

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visions of Rule 14 of Cenvat Credit Rules, 2004, read with Section 11AB of the Central Excise Act, 1944 for the reasons cited supra. I imposed penalty of ₹ 2,96,507/- upon the appellant under the provisions of Rule 15(2) of the Cenvat Credit Rules, 2004, read with Section 11AC of the Central Excise Act, 1944, for the reason cited supra. Aggrieved by the above impugned order dated 21/12/2009, the appellant is before me. 3. Shri S.K. Babaladi, Ld. Consultant for the appellant submits that sh .....

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ed reliance on this Tribunal judgment in the case of Shri Shree Rubber Plast Vs. Commissioner of Central Excise, Thane-II [order no. A/1077/15/SMB dated 16/4/2015] wherein this Tribunal considered the judgments of Hon ble Madras High Court in the case of ICMC Corporation Ltd. Vs. CESTAT [2014 (302) ELT 45 (Mad.)] wherein it was held that in case of re-credit of Cenvat suo moto, no refund claim under Section 11B is required to be filed. He further submits that Ld. Commissioner (Appeals) has not c .....

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t case that the transportation is for export of goods and place of removal is port of export, services used from factory to port of export is admissible. 4. Shri N.N. Prabhudesai, Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that though the show cause notice was issued against suo moto credit taken by the appellant, genesis of the whole case was audit had raised objection and the admissibility of the Cenvat credit in respe .....

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d by them, (ii) Whether Cenvat credit is admissible in respect of GTA for use for export of goods and Cenvat credit in respect of invisible loss occurred in the job work process. As regard the suo moto credit, bench of this Tribunal has already decided in the case of Shri Shree Rubber Plast (supra) following Hon ble Madras High Court judgment in case of ICMC Corporation Ltd. (supra) that re-credit of Cenvat credit is in order and credit cannot be denied only because the assessee has taken suo mo .....

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not been verified. I am of the considered view that if Cenvat credit in respect of service tax paid towards GTA and said GTA used for export of goods, the place of removal stands extended up to the port of export and therefore transportation from factory to port of export is clearly covered by the term up to the place of removal and if it is so, appellant is entitle for Cenvat credit. As regard invisible loss, I am of the view that invisible loss unless and until it is proved that the goods were .....

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