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

2017 (4) TMI 786 - CESTAT ALLAHABAD

2017 (4) TMI 786 - CESTAT ALLAHABAD - TMI - Reversal of credit - Rule 57CC of CER, 1944 read with Rule 6(2) of CCR 2001/2002 & 2004 - manufacture of Carbon Black - input furnace oil used for generation of steam to run their machinery and to generate electricity and some part of the surplus steam is sold out to the adjoining industrial units - whether appellant required to reverse credit on the units cleared? - validity of SCN - Held that: - the whole SCN is misconceived as it is not the case of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

enue is in appeal against order of the Commissioner (Appeals) wherein under the facts that the respondent-assessee was engaged in the manufacture of Carbon Black and using input furnace oil for generation of steam to run their machinery and to generate electricity and some part of the surplus steam is sold out to the adjoining industrial units, it has been held that the respondent-assessee is not required to reverse any amount under Rule 57CC of Central Excise Rules, 1944 read with Rule 6(2) of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee is taking Cenvat credit on inputs namely furnace oil, spares of plant and machinery used for generation of steam (non-excisable) and Modvat/Cenvat credit so availed was utilized for payment of duty on final product and no separate account of inputs used in generation of steam, cleared for sale, was maintained. It further appeared to Revenue that the appellant was required to reverse an amount of 8% or 10% (as applicable) on the value of steam cleared during the period in dispute 2001-02 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rovisions of Rule 6(2) of Cenvat Credit Rules 2001, 2002 & 2004, do not apply. Further reliance was placed on the ruling of this Tribunal in the case of Kothari Sugars & Chemicals Ltd. Versus Commissioner of Central Excise, reported at 2005 (67) RLT 414 wherein it was held that in such situation, the assessee would be required to reverse credit corresponding to the credit taken on inputs used for the generation of steam. Further contended that inputs for the purpose of Rule 6, do not inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as filing declaration showing the list of inputs and final products being manufactured by them and also filing classification list/declaration under the then Rule 173B where under the category of other goods respondent-assessee was showing the generation of steam. Both of the Show Cause Notices was adjudicated vide Order-in-Original dated 31st January, 2007 and the proposed demand was confirmed with equal amount of penalty. 4. Being aggrieved the appellant preferred appeal before ld. Commissione .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e goods manufactured is exempted from the rigours of the quoted sub-rules. Credit would not be restricted or required to be reversed in case of fuel. Since there is no finding that furnace oil was not used as fuel, the objection to the eligibility to credit and subsequent recovery at 8%/10% cannot be upheld in this case. In the erstwhile Rule 57CC also, an exception was created for the fuel used as an input, meaning thereby that when a manufacturer avails Modvat credit on an input used as fuel a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nor such final products are called upon to pay an amount @ 8% of their price. The same view is expressed in the case of National Engineering Ind. Ltd. Versus Commissioner of Central Excise, Jainpur [2002 (102) ECR 808 (Tri)]. In the case of Navsari Oil Products Versus Commissioner of Central Excise, Surat [2003 (107) ECR 22] also the Hon ble Tribunal has held that the assessee is not liable to reverse the credit taken on furnace oil used for generation of electricity and steam used in the manufa .....

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