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 overturns disallowance of Cenvat Credit, stresses fair procedures</h1> <h3>M/s Inox India Pvt. Ltd. Versus C.C.E. & S.T., Vadodara-ii</h3> M/s Inox India Pvt. Ltd. Versus C.C.E. & S.T., Vadodara-ii - TMI Issues:1. Availment of Cenvat Credit on imported materials.2. Discrepancies in maintaining Cenvat register.3. Allegation of belatedly availing Cenvat Credit.4. Violation of principles of natural justice.5. Time-barred demand for Cenvat Credit.6. Suppression of facts by the appellant.Analysis:1. The appellant was engaged in manufacturing various products falling under different chapters of the Central Excise Tariff Act, 1985, availing Cenvat Credit on inputs, capital goods, and input services. The issue arose when discrepancies were found in the Cenvat register during an audit, showing belated availing of credit on Customs duty, additional duty, and education cess debited in various duty credit scrips. The department issued a Show Cause Notice (SCN) for disallowance of the credit, citing it as time-barred due to the delay in availing the credit.2. The appellant argued that the delay in availing credit was unintentional, citing a previous Circular as the reason for not taking credit earlier. The appellant contended that there was no specific timeline prescribed for availing credit under the Cenvat Credit Rules, 2004. The appellant also raised concerns about the adjudication being based on a verification report not provided to them, alleging a violation of principles of natural justice.3. The Tribunal analyzed the limitation for availing Cenvat Credit during the relevant period and noted that there was no specific time limit prescribed until a later amendment. The Tribunal held that the credit cannot be disallowed solely based on belated availing, especially when there was no time limit in place earlier. The Tribunal emphasized the importance of establishing the receipt of inputs for cases where credit was belatedly taken for the first time. The Tribunal found errors in the adjudicating authority's failure to verify the Lorry Receipts, leading to a violation of natural justice.4. The Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh denovo order, considering the observations made. The issue of limitation was also kept open for further consideration. The Tribunal highlighted the need for proper verification and consideration of all relevant documents to ensure a just decision.In conclusion, the judgment addressed the issues of belatedly availing Cenvat Credit, discrepancies in maintaining records, violation of natural justice, and the time-barred demand for credit. The Tribunal emphasized the importance of following principles of natural justice, proper verification of documents, and considering all relevant factors before making a decision in such cases.
TaxTMI 