TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Upholds Expunging Cenvat Credit Balance Decision</h1> <h3>M/s. Loyal Textile Mills Ltd. Versus Commissioner of Central Excise, Tirunelveli</h3> M/s. Loyal Textile Mills Ltd. Versus Commissioner of Central Excise, Tirunelveli - TMI Issues:1. Applicability of Notification No.30/2004-CE regarding Cenvat credit reversal.2. Interpretation of Rule 11(2) of Cenvat Credit Rules, 2004.3. Utilization of unutilized Cenvat credit balance.4. Impact of exemption on Additional Excise Duty (AED) on credit utilization.Analysis:1. The case involved the appellants engaged in manufacturing various textile products availing benefits under Notification No.30/2004-CE. The issue arose when the adjudicating authority expunged a Cenvat credit balance of Rs.11,55,740/- due to the proviso of the notification, which excludes goods where duty credit on inputs has been claimed under Cenvat Credit Rules, 2004.2. The appellant's counsel argued that Rule 11(2) of the Cenvat Credit Rules, 2004 should be interpreted in the context of notifications based on the value or quantity of clearance in a financial year, like Small Scale Industries (SSI) exemption. The counsel contended that as the unutilized credit balance was from 2004-05 and still with the assessee, the matter should be closed without delving into the merits. Additionally, the denial of credit on Additional Excise Duty (AED) was exempted under Notification No.30/2004-CE, hindering its utilization.3. The Revenue's representative cited a Supreme Court case where unutilized credit lapse was upheld. However, the Tribunal found that since AED was exempted by Notification No.30/2004-CE, and the case pertained to 2004, the appellant could not utilize the credit balance. Consequently, the Tribunal deemed the decision on the eligibility of unutilized credit as merely academic, leading to the dismissal of the appeal without a detailed examination of the merits. The Tribunal left all issues open for future determination in suitable cases.This comprehensive analysis highlights the key legal aspects and arguments presented in the judgment, addressing the issues related to the applicability of notifications, interpretation of rules, credit utilization, and the impact of exemptions on credit availability.
TaxTMI 
TaxTMI 
