Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Bajaj Auto Ltd. Versus Commissioner of Central Excise, Aurangabad

2016 (3) TMI 434 - CESTAT MUMBAI

Recovery of Cenvat Credit - demands for Cenvat Credit on the said goods on the grounds that the same have not been used for the manufacture of dutiable final products - Held that:- The appellants are not required to reverse the Cenvat Credit as alleged in the show-cause notice the credit on inputs which has written off obsolete in the financial accounts but were physically lying in their stock. As the appellants have succeeded on this issue, therefore, we are not dealing with other issues. See R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sheet as the same were considered non-moving and obsolete. The revenue sought to recover the Cenvat Credit availed on the said goods on the grounds that the same have not been used for the manufacture of dutiable final products. The demands for Cenvat Credit was confirmed by the Commissioner relying on the CBE&C Circular No. 645/36/2002-CX dated 16/07/2002. The Commissioner also relied on the decision of this Tribunal in the case of RPG Cables Ltd., vs. CCE, Mumbai - 2003 (157) ELT 273 (Tri- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion Ltd., -2008 (226) ELT 339 (Bom) and the decision of Hon'ble High Court of Bombay in the case of Hindalco Industries Ltd. - 2011 (272) ELT 161 (Bom). He further argued that the amendment made to Rule 5 of the Cenvat Credit Rules, 2004 by insertion of sub-rule (5B) is not retrospective. The said insertion was made by Notification No. 26/2007-CE (NT) dated 11/05/2007. 3. The learned DR relies on the decision of RPG Cables Ltd., (supra) he also relies on the impugned order and on the CBE&am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re different from the case relied upon by the appellants. In the present case the adjudicating authority gave a specific finding of fact that inputs were not physically available even after being written off from the account nor there is any evidence that the goods were used in the manufacture of the final products. In view of the above discussion, we find no interference in the impugned order whereby the benefit of Modvat credit was denied to the appellants. However, taking into facts and circu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s from the case of Bharat Heavy Electricals Ltd. vs. CCE, Bangalore - 2002 (50) RLT 208 (CEGAT-Bang) on the grounds that in the said case no reversal was required because the written off goods were physically present in the factory. Thus, the said decision of the Tribunal in the case of RPG Cables Ltd., does not help the case of Revenue. Tribunal in the case of Philips Electronics India Ltd. vs. CCE, Pune - 2011 (274) ELT 311 (Tri-Mumbai) has observed as follows: 12. After hearing both sides and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cumstances of the case, the appellant is required to reverse the Cenvat credit availed on the inputs at the time of writing off in the financial records, which have been written off in the financial records as obsolete or not. 13. To decide the issue, we have to go through the provisions of law, which deals such a situation and Rule 3(5) of Cenvat Credit Rules, 2004 deals with the situation, which is reproduced herein as under: (5) When inputs or capital goods, on which CENVAT credit has been ta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

output service for providing the output service: Amended vide Notification No. 10/2008-Central Excise (N.T.), dated 1-3-2008) Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by the jurisdictional Deputy Commissioner o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aking the Cenvat Credit; . [Inserted vide Notification No. 39/2007-Central Excise (N.T.), dated 13-11-2007] (5A) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value. [Above sub-rule (5A) has been inserted vide Notification No. 27/2005-C.E. (N.T.), dated 16-5-2005] (5B) If the value of any, (i) input, or (ii) capital goods before being put to use, on which CENVAT Credit has been taken is written off fully or whe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o. 26/2007-Central Excise (N.T.), dated 11-5-2007] (5C) - Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods shall be reversed. 14. As per the above provision, it is clearly stated that when inputs or capital goods on which the Cenvat credit has been taken are removed as such from the factory or the premi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that if the inputs on which Cenvat credit has been taken is written off fully or where any provision to write off fully has been made in the books of account, then the manufacturer or service provider as the case may be shall pay an amount equivalent to the Cenvat credit taken in respect of the said input or capital goods. Admittedly, these provisions have come into force on 11-5-2007. The period in the case in hand is prior to 11-5-2007, therefore, the provisions of Rule 3(5)(b) of the Cenvat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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