Tribunal upholds Revenue's appeal, denying Cenvat Credit to cement manufacturer for evading excise duty.

The Tribunal upheld the Adjudicating Authority's order and set aside the Commissioner (Appeals) decision in an appeal by the Revenue. The case involved the denial of Cenvat Credit to a cement manufacturer for removing inputs without reversing the credit, leading to evasion of excise duty payment. The Tribunal emphasized the importance of proper declaration and compliance with excise duty regulations, rejecting the respondent's reliance on a previous Tribunal decision. The appeal was allowed, highlighting the necessity of adhering to legal requirements.

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Issues:
Appeal against an order setting aside Adjudication order due to limitation on Cenvat Credit denial for removal of inputs without reversal.

Analysis:
The case involved an appeal by the Revenue against an order where the Commissioner (Appeals) set aside the Adjudication order due to the show cause notice being barred by limitation. The respondent, a manufacturer of Portland Slag Cement, faced a show cause notice proposing to deny Cenvat Credit amounting to Rs. 10,36,867 for the period from 2008-09 to 2011-12. The notice alleged that the respondent removed inputs (Granulated Slag) without reversing the credit. The Adjudicating Authority disallowed the credit along with interest and imposed a penalty. The Commissioner (Appeals) set aside the Adjudication order citing limitation as the ground.

Upon hearing both sides and examining the records, the Adjudicating Authority found that the respondent had used duty paid and non-duty paid Granulated Slag without proper declaration in their returns. The Authority noted the suppression of facts regarding the removal of inputs without payment of duty, leading to willful contravention of the law to evade excise duty payment. The Commissioner (Appeals) observed discrepancies in the respondent's ER-I returns, where there was no corresponding entry of Cenvat credit utilized for the clearance of inputs as such. The Commissioner upheld the Adjudicating Authority's decision, emphasizing the importance of declaring duty paid inputs in returns to avoid confusion. The Commissioner rejected the applicability of a previous Tribunal decision cited by the respondent's counsel.

Ultimately, the Tribunal upheld the Adjudicating Authority's order and set aside the Commissioner (Appeals) decision. The appeal by the Revenue was allowed, emphasizing the necessity of proper declaration and compliance with excise duty regulations. The judgment was pronounced in open court on 28.12.2016.

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