Appellate Tribunal Upholds Credit for Job-Worker Inputs The Appellate Tribunal in Kolkata upheld the Commissioner's decision allowing credit to a job-worker for inputs received. The Tribunal found that the ...
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Appellate Tribunal Upholds Credit for Job-Worker Inputs
The Appellate Tribunal in Kolkata upheld the Commissioner's decision allowing credit to a job-worker for inputs received. The Tribunal found that the job-worker's procurement of goods, as opposed to purchasing them, did not preclude eligibility for credit under the CENVAT Credit Rules. Relying on a previous case, the Tribunal determined that 'procured' encompassed the concept of 'purchased,' thus permitting credit for duty paid inputs. With no High Court order reversing the Tribunal's decision and the undisputed duty paid nature of the inputs, the Tribunal dismissed the Revenue's appeal. Judges Shri S.S. Kang and Shri M. Veeraiyan presided over the judgment.
Issues: Appeal against Commissioner's order allowing credit to job-worker for inputs received; Grounds of job-worker not purchasing goods but procuring them; Interpretation of CENVAT Credit Rules regarding 'procured' vs. 'purchased'; Tribunal's reliance on previous case; Lack of High Court order reversing Tribunal's decision; Dispute over duty paid nature of inputs.
The Appellate Tribunal, Kolkata, heard an appeal filed by the Revenue against the Commissioner's order allowing credit to a job-worker for inputs received. The Revenue contended that the job-worker had procured, not purchased, the goods, making credit impermissible. The Commissioner relied on a previous Tribunal decision in the case of Exide Industries Ltd., where it was held that under the CENVAT Credit Rules, 'procured' replaced 'purchased,' making credit admissible for duty paid inputs that were procured. The Revenue had appealed this decision to the High Court, but no order reversing the Tribunal's decision was presented. The Tribunal noted that the duty paid nature of the inputs received by the Respondents was undisputed. Consequently, the Tribunal found no issues with the Commissioner's order and dismissed the appeal. The judgment was pronounced and dictated in open court by the judges Shri S.S. Kang and Shri M. Veeraiyan.
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