Tribunal allows Cenvat credit on duty paid for coal during exemption period. Upholds payment principle.

The Tribunal allowed the appeal, holding that the appellants rightfully availed Cenvat credit on duty paid by the supplier for coal received during a period when coal was exempted from duty. The principle that the payment made at the supplier's end cannot be questioned at the recipient's end was upheld, citing relevant decisions. The impugned order was set aside, and consequential relief was granted to the appellants.

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Issues involved: Availment of Cenvat credit on duty paid by the supplier for coal received during a period when coal was exempted from duty.

Summary:

Issue 1: Availment of Cenvat credit on duty paid by the supplier
The appellants availed Cenvat credit on duty paid by the supplier for coal received during a period when coal was exempted from duty. The Revenue's contention was that since coal was exempted during that period, the supplier should not have paid the duty. However, it was established that the supplier indeed paid the duty, and the appellants rightfully availed the credit of duty paid by the supplier. The principle that the payment made at the supplier's end cannot be questioned at the recipient's end was upheld. Reference was made to the decisions of the Hon'ble Punjab and Haryana High Court in similar cases, such as Commissioner of Central Excise, Chandigarh vs. Ranbaxy Labs Ltd. [2006 (203) ELT 213 (P&H)] and V.G. Steel Industry vs. CCE [2012 (27) STR 94 (P&H)]. The Tribunal found no need to delve into other decisions due to the clear legal position established by the aforementioned judgments.

Decision:
The Tribunal set aside the impugned order and allowed the appeal, providing consequential relief to the appellants. The stay petition and appeal were disposed of accordingly.

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