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of <h1>Tribunal allows appeal, sets aside order. Appellant eligible for CENVAT credit, based on Rule interpretation.</h1> <h3>M/s Jamna Auto Industries Ltd. Versus C.C.E. & S.T., Indore</h3> M/s Jamna Auto Industries Ltd. Versus C.C.E. & S.T., Indore - TMI Issues:1. Admissibility of CENVAT credit based on challans certified by the Directorate of Revenue Intelligence (DRI).2. Application of Rule 9(10)(b) of the CENVAT Credit Rules, 2004.3. Settlement Commission's Final Order dated 28.03.2011 and its impact on the present case.4. Interpretation of Rule 9(1)(b) of the CENVAT Credit Rules, 2004.Issue 1: The appellant availed CENVAT credit based on DRI-certified challans, disputed by the Central Excise Department due to under-valuation of imported goods and subsequent payment of differential duty by the supplier. The Department contended that fraud, collusion, and suppression of facts disallowed the credit under Rule 9(10)(b) of the CENVAT Credit Rules, 2004.Issue 2: The appellant argued that the Settlement Commission's Final Order dated 28.03.2011 established the non-payment of duty as a bona fide mistake, allowing for the admissibility of CENVAT credit based on valid duty paying documents under Rule 9 of the CENVAT Credit Rules, 2004. The appellant cited relevant case laws to support their position.Issue 3: The Settlement Commission's Final Order determined the appellant's mistake as bona fide, precluding charges of fraud or suppression. As the Show Cause Notice was challenged before the Settlement Commission, the embargo under Rule 9(1)(b) did not apply, and the lower authorities could not adjudicate the matter without an order on the Notice.Issue 4: The Tribunal found that Rule 9(1)(b) restrictions apply only when goods are sold with an invoice issued as per Central Excise Rules, not when goods are consumed internally without sale. As the appellant paid the differential duty and availed credit based on DRI-certified challans, the Rule's restriction did not apply, making the appellant eligible for CENVAT credit.In conclusion, the Tribunal set aside the impugned order, allowing the appeal in favor of the appellant based on the Settlement Commission's findings, the interpretation of Rule 9(1)(b), and the appellant's compliance with duty payment and credit availing procedures.
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