TMI Blog2018 (2) TMI 1661X X X X Extracts X X X X X X X X Extracts X X X X ..... hich appropriate duty liability has been discharged - appeal allowed - decided in favor of appellant. - E/85923/2015 - A/92134/2017 - Dated:- 29-9-2017 - Shri C J Mathew, Member (Technical) Ms. Anjali Hirawat, Advocate - for the Appellant Ms. Trupti Chauhan, Asstt. Commissioner (AR) - for the Respondent ORDER M/s Eveready Industries Ltd, a manufacturer of manganese dioxide was proceeded against for denial of CENVAT credit of ₹ 7,06,000/- attributable to inputs valued at ₹ 44,1,350.18 which, according to their trial balance, was adjusted as material usage variance and, hence, not used in manufacture of goods. 2. According to the adjudicating authority, it is only such credit that pertinent to inputs t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence are not proposed to be used, the CENVAT credit availed will have to be paid back on the same lines as applicable to inputs as mentioned in (i) above. 5.3 As per the above clarifications the credit availed has to be reversed in the case of fully written off the inputs. The appellant contended that several of the raw materials used were non-excisable or procured from SSI units without payment of duty. Hence, the entire amount of 7.06 lacs is not attributable to cenvatable inputs. On the other hand, the adjudicating authority in the impugned order had observed that the appellant, apart from giving mere theoretical calculations, had not submitted any documentary proof to substantiate their case. Even after specific findings of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant had procured inputs that were not levied to duty and hence not eligible for CENVAT credit to that extent. 5. On perusal of the records, it is seen that the demand sought to be recovered had been confirmed on the ground that the usage of inputs was in excess of that stipulated in the production norms. The contention made on behalf of the appellant that there is no allegation of illicit removal of inputs or non-receipt of the inputs is irrefutable. Taxation laws cannot be extended beyond the objectives laid down in the statute. The commercial viability and the market may disincentivise inefficiency, indirect tax laws are concerned with levy of tax on the occurrance of the taxable event. The tax element here is manufacture and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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