TMI Blog2016 (9) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the Cenvat credit was taken were regularly in use for packing the finished product and therefore the Cenvat credit availed was eligible. I also find that Cenvat credit which is validly taken needs to be reversed only when the inputs are cleared as such. I, further, note that Rule 14 of Cenvat Credit Rules, 2004 provided for recovery of irregularly availed Cenvat credit and it is beyond the scope of said Rule 14 of Cenvat Credit Rules to recover the Cenvat credit which was validly taken. I, therefore, hold that the Show Cause Notice is misconceived and therefore, I set aside the Show Cause Notice, Order-in-Original and Order-in-Appeal. - Decided in favour of appellant - Appeal No. E/51087/2015-EX [SM] - Final Order No. 70852/2016 - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Cenvat Credit Rules, 2004 read with proviso to Sub-section (1) of Section 11A of Central Excise Act, 1944. There were also proposals for charging interest and imposing penalty. The appellant submitted before the Original Authority that the plastic laminated packing pouches were in use for a long time for packing of products Chewing Tobacco and therefore, they were eligible inputs for a long time and Cenvat credit was availed on the same does not become ineligible because the said plastic laminated packing pouches material cannot be used for packing in the final product. They further stated that at the time credit was taken there was no final order passed by Hon ble Supreme Court about use of the plastic laminated packing pouches for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 11A of Central Excise Act, 1944 and set aside the said penalty imposed and modified Original Order to that extent. 3. Aggrieved by the Order-in-Appeal dated 23-12-2014, the appellant preferred appeal before this Tribunal, the grounds inter-alia, are as follows:- (a) The ld. Commissioner (Appeals) has erred in not appreciating the fact that at the time, the credit was taken and at the time the credit was utilized, the fact of taking and utilizing the credit was perfectly legal and that under the said Cenvat Credit Rules, 2004 there is no requirement of one-to-one correlation between the input and the finished goods and that credit is admissible immediately after receipt of the inputs. (b) The ld. Commissioner (Appeals) could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns into consideration. I find that the date on which Cenvat credit was taken by the appellant the inputs on which the Cenvat credit was taken were regularly in use for packing the finished product and therefore the Cenvat credit availed was eligible. I also find that Cenvat credit which is validly taken needs to be reversed only when the inputs are cleared as such. I, further, note that Rule 14 of Cenvat Credit Rules, 2004 provided for recovery of irregularly availed Cenvat credit and it is beyond the scope of said Rule 14 of Cenvat Credit Rules to recover the Cenvat credit which was validly taken. I, therefore, hold that the Show Cause Notice is misconceived and therefore, I set aside the Show Cause Notice, Order-in-Original and Order-in-A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
