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of <h1>Tribunal overturns Commissioner's decision on input credit reversal under Rule 57AB</h1> The Tribunal allowed the appeal, setting aside the order passed by the Commissioner (Appeals) regarding availing credit for inputs cleared to a sister ... Duty demand - Reversal of CENVAT Credit - Held that:- in the case of Bajaj Tempo Limited [2014 (3) TMI 132 - CESTAT MUMBAI] whereby the Tribunal followed the decision of the Larger Bench in the case of Commissioner of Central Excise, Vadodara v. Asia Brown Boveri Ltd. reported in [2000 (7) TMI 110 - CEGAT, NEW DELHI] and in the case of Commissioner of Central Excise, Coimbatore v. American Auto Service reported in [1995 (6) TMI 33 - CEGAT, MADRAS] and held that in case of inputs were cleared as such the credit availed is to be reversed - in case the inputs were cleared as such the manufacturer is to reverse the credit availed - Decided in favour of assessee. Issues:- Appeal against order passed by Commissioner (Appeals) regarding availing credit for inputs cleared to sister unit under Rule 57AB of Central Excise Rules.Analysis:The appellant filed an appeal against the order passed by the Commissioner (Appeals) regarding availing credit for inputs cleared to a sister unit under Rule 57AB of the Central Excise Rules for the period from July 2000 to May 2001. The Revenue contended that appropriate duty should be paid as the inputs cleared to the sister units are to be considered as manufactured by the appellant. The Tribunal referred to the decision in the case of Bajaj Tempo Limited and followed the decision of the Larger Bench in the case of Commissioner of Central Excise, Vadodara v. Asia Brown Boveri Ltd. and Commissioner of Central Excise, Coimbatore v. American Auto Service. The Tribunal held that if inputs were cleared as such, the credit availed should be reversed. Consequently, the Tribunal found merit in the appellant's contention that the manufacturer should reverse the credit availed in such cases. Therefore, the impugned order was set aside, and the appeal was allowed.
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