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

2016 (5) TMI 837 - CESTAT CHENNAI

2016 (5) TMI 837 - CESTAT CHENNAI - 2016 (344) E.L.T. 531 (Tri. - Chennai) - Job-work - Eligibility of refund claim - Availability of Cenvat credit - Moulds not used in appellant’s factory - Ground of rejection of refund claim is beyond the scope of SCN - Appellant submitted that the SCN is faulty in as much as the applicable rule in this case is 4(5)(b) of Cenvat Credit Rules, 2004 wherein there is no condition of receiving back the moulds within 180 days. The show cause notice wrongly applied .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ollowing the procedure prescribed under the CENVAT Credit Rules, denial of refund of reversed credit is not in order. Therefore, by following the judgment of Hon'ble Bombay High Court as upheld by Hon'ble Supreme Court in the case of CCE, Nagpur vs. Indorama Textiles Limited [2009 (10) TMI 571 - BOMBAY HIGH COURT] and the Tribunal ruling in CCE & C, Daman, VAPI vs. Guala Closures (I) Private Limited [2009 (1) TMI 564 - CESTAT, AHMEDABAD], there is no condition under Rule 4(5) (b) of Cenvat Credi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

supal, AC (AR) ORDER M/s. Tower Steels Ltd., (hereinafter referred to as the appellants) Kappalur, Madurai are engaged in manufacture of CTD Bars, MIS Roll, Wire Coil, Wire Rods and Wire Nails. 2. The appellants sent inputs such as scrap etc. and CI Ingot Moulds on which Cenvat Credit was taken to their job-worker who manufactured MS Ingots and sent the same it back to the appellants. The MS Ingots manufactured by the job worker is an intermediate product which is used in the manufacture of CTD .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

same as scrap. Such MS Ingots were also returned to the appellants who used it in the manufacture of finished goods namely CTD bars in their factory. As the CI Ingot Moulds were finally consumed in the manufacture of finished goods, the same was declared by the appellants as scrap though it is capital goods as per Rule 2(a) of Cenvat Credit Rules, 2004. 3. On a visit to the appellant company s premises on 14.3.2006, and on verification of records by the Divisional Preventive Unit of Madurai I Di .....

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 to the appellant company on the ground that the moulds in question could not be used in the appellants factory as capital goods and hence the appellant company mis-declared as Inputs and the said moulds were not sent back by the job workers within the specified period (180 days) and the said moulds became scrap at job workers premises itself. The Joint Commissioner in the Order-in-Original No.18/2012 dated 29.6.2012 has held that the point to be considered is whether the ingot moulds are to b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

correct. 5. The Ld. Counsel Shri S. Venkatachalam, Advocate appearing on behalf of the appellant submits that it is clear from the said order of the Ld. Commissioner (Appeals) has already allowed the Cenvat credit on merit and only verification has been ordered which has been accepted by the department. He also submits that all the relevant details were furnished to prove the consumption of CI Ingot Moulds in the manufacture of MS Ingot which in turn was received back by the appellant and used 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

itted all the required documents, they are eligible for refund and the rejection of refund on a ground now raised in the impugned order is not sustainable in law in as much as the ground now raised is beyond the scope of the show cause notice. On merits, it is submitted that the show cause notice is faulty in as much as the applicable rule in this case is 4 (5) (b) of Cenvat Credit Rules, 2004 wherein there is no condition of receiving back the moulds within 180 days. The show cause notice wrong .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellants declared CI Ingot Moulds as input instead of capital goods even then the appellants are eligible for credit in as much as the rule provides taking of credit subsequently. Further as the moulds are used as input finally and consumed in the manufacture of intermediate goods namely MS Ingots, the appellant is eligible for credit as per Rule 2(i) in as much as input means all goods with certain exceptions. He prayed that the appeal may please be allowed with consequential relief of refun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecific as to whether the ingot moulds have been eventually used in the manufacture of ingots which in turn have been used in the manufacture of final products viz. CTD Bars and the same has been cleared on payment of duty. 8. Heard both the sides in the matter. After perusing the orders passed by the lower authorities, it is felt that they have erred in their findings to the effect that that the moulds were not used in the appellant s factory, and as such the same is not eligible for 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

uch goods are allowed to be sent to a job workers premises, where further manufacturing process is carried on behalf of the principal, credit is not to be denied. There can be no doubt that the spirit behind the CENVAT scheme which is a beneficial one, would be lost, if a statutory benefit is denied by wrong interpretation of certain procedural provisions which permit the facility so long as the item in question are treated either as inputs or as capital goods. Therefore, the denial of credit 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

 

 

 

 

 



|| 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