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

2015 (12) TMI 732 - CESTAT BANGALORE

2015 (12) TMI 732 - CESTAT BANGALORE - 2016 (344) E.L.T. 348 (Tri. - Bang.) - Reversal of SAD credit on removal of inputs as such - Whether in such a scenario, the law requires separate reversal of SAD or not - Held that:- Provision of law simplicitor requires an assessee to reverse the CENVAT credit so availed by him in case the receipted inputs are subsequently removed. In the present case admittedly the appellant has paid excise duty by adopting transaction value of the said inputs by debitin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

paid at the time of import. If the cumulative credit in respect of all the duties is to the extent of ₹ 100 and if an asseessee has paid ₹ 120/- at the time of clearance of such inputs, it can be safely concluded that the entire credit stands reversed by him. There cannot be any further requirement of reversal of SAD component separately. - Impugned order is set aside - Decided in favour of assessee. - E/21155/2014-SM - Final Order No. 22113/2015 - Dated:- 28-10-2015 - Smt. Archana W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id imported inputs were cleared on payment of duty of CVD, education cess, SHE cess as also on payment of SAD. The duties so paid by the appellant were availed as credit. 2. Though appellants are using the said inputs in the manufacture of their final product but in case of surplus inputs, the same are removed as such by selling the same. At the time of removal of the said inputs, the appellant paid the duty of excise on the transaction value of the said inputs, by debiting the same out of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

14 of CENVAT Credit Rules 2004. 4. During the course of adjudication, the appellant contested the demand on merits as also on limitation. It was specifically pleaded by them that while paying duty of excise on the inputs sold by them, they have reversed much more than the total credit so availed by them. As such, there was no need to separately reverse the SAD credit. As regards limitation, they pleaded that the entire facts were in the knowledge of the Revenue and were part of their records, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

authority was upheld by Commissioner(Appeals). Hence the present appeal. 6. I have considered the submissions made by both the sides. It is not disputed that the inputs were imported by the appellant on payment of duties for further use in the manufacture of their final product. The duties so paid by the appellant were availed as credit in their statutory records. However in some cases, the inputs being surplus were sold by the appellant on a transaction value and on payment of duty of excise. S .....

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 CENVAT credit has been taken, are removed as such from the factory, the manufacturer of the final product shall pay an amount equal to the credit availed in respect of such inputs. As such, the said provision of law simplicitor requires an assessee to reverse the CENVAT credit so availed by him in case the receipted inputs are subsequently removed. In the present case admittedly the appellant has paid excise duty by adopting transaction value of the said inputs by debiting the CENVAT cred .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the CENVAT credit taken on these inputs. And hence they have contended that they need not to reverse the SAD component as they have already paid an amount more than what they have availed as CENVAT Credit, therefore no requirement in the CENVAT Credit Rules, 2004 to reverse the credit availed on SAD. 20. These contentions of the assessee cannot be accepted. Mere paying more amounts by adopting the transaction value does not suffice the compliance to the provision of law. As per Rule 3(5) of CENV .....

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