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of <h1>Tribunal remands case for reassessment of credited amount in light of Supreme Court ruling</h1> <h3>M/s OM Glass Works Pvt. Ltd., Versus Commissioner of Central Excise, Kanpur</h3> M/s OM Glass Works Pvt. Ltd., Versus Commissioner of Central Excise, Kanpur - TMI Issues:- Appeal against Order-in-original No. 10-CE/Commissioner/2011 dated 27/05/2011 passed by Commissioner of Central Excise, Kanpur.- Interpretation of Rule 6 of Cenvat Credit Rules, 2004 regarding reversal of attributable Cenvat credit.- Application of the decision of Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. Vs CCE, Nagpur.Analysis:The appeal before the Appellate Tribunal CESTAT ALLAHABAD arose from an Order-in-original passed by the Commissioner of Central Excise, Kanpur. The case involved a manufacturing company engaged in producing glass articles, some attracting Central Excise duty while others were exempt. The appellant failed to maintain separate streams as required by Rule 6 of Cenvat Credit Rules. The dispute centered on the application of Section 73 of the Finance Act, 2010, and Sub-rule 3A of Rule 6 of the Cenvat Credit Rules, 2004. The Original authority allowed relief for a specific period but denied it for subsequent periods due to non-compliance with the reversal procedure for Cenvat credit on exempted goods.During the hearing, the appellant argued that they calculated and reversed the attributable Cenvat credit for goods cleared at nil duty rate post-01.04.2008, citing the decision of the Hon'ble Supreme Court in Chandrapur Magnet Wires (P) Ltd. Vs CCE, Nagpur. They contended that by reversing the credit, it should be treated as if it was never availed, thus exempting them from paying a percentage of the value of exempted final products. On the other hand, the Revenue supported the Order-in-Original.After considering the arguments and examining the records, the Tribunal found a lack of details regarding the attributable Cenvat credit for goods cleared at nil duty rate for a specific period. Consequently, the Tribunal remanded the matter back to the original authority, directing them to assess the credited amount, verify if it was debited by the appellant with interest, and apply the Supreme Court ruling in the Chandrapur Magnet Wires case. The appellants were instructed to cooperate during the re-examination by the Original Adjudicating Authority, leading to the setting aside of the impugned order and the remand of the case for further review and compliance.
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