Appellate Tribunal overturns credit denial and demand confirmation, orders fresh consideration for railway track manufacturer.

The Appellate Tribunal CESTAT KOLKATA set aside an order denying credit to one appellant and confirming a demand against another. The first appellant, a manufacturer of railway track materials, argued inconsistency in treatment compared to a similar case involving their sister concern. They contended that the steel ingots used were of alloy specification, contrary to the Revenue's claim of non-alloy usage. The Tribunal remanded the matter for fresh consideration based on the acceptance of a previous order dropping a similar demand, ultimately disposing of the appeals through remand.

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Issues involved: Denial of credit to one appellant and confirmation of demand against another appellant.

The Appellate Tribunal CESTAT KOLKATA heard appeals against an order denying credit of Rs.15,73,482/- to one appellant and confirming a demand of Rs.48,20,700/- against another. The first appellant, engaged in manufacturing railway track materials and wagon components, availed credit for duty paid on inputs used in manufacturing dutiable finished goods. The second appellant, a job worker, was confirmed demand on the grounds of using non-alloy steel ingots. The first appellant argued that a similar case involving their sister concern had the demand dropped, indicating inconsistency in treatment. They also contended that the ingots used were of specification EN-45, which is for alloy steel, contrary to the Revenue's claim of non-alloy steel usage. The Revenue accepted a previous order dropping a similar demand, leading the Tribunal to set aside the impugned order and remand the matter for fresh consideration. The appeals were disposed of by way of remand.

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