2018 (9) TMI 8 - AT - Central Excise

CESTAT Allahabad: Appellant wins as revenue's claim of non-reversal of Cenvat credit deemed unsubstantiated.

The CESTAT Allahabad ruled in favor of the appellant, finding the revenue's claim of non-reversal of Cenvat credit unsubstantiated. The demand of Rs. ... Non-reversal of Cenvat credit involved in the sale of plant & machinery - Validity of SCN - Held that:- The basis for issue of show cause notice was that A.G. Audit came to know from the party’s balance sheet that party received ₹ 23.00 Lakhs during the year 2009-10 on account of sale of plant & machinery. Without producing any evidence that the appellant had availed any Cenvat credit in respect of such plant & machinery it was presumed that party had availed Cenvat credit and was required to reverse Cenvat Credit of ₹ 2,81,283/- - there is no basis for issue of said show cause notice since the burden was on Revenue to prove that appellant had availed Cenvat Credit - appeal allowed - decided in favor of appellant. The appellate tribunal CESTAT Allahabad ruled in favor of the appellant in a case involving a demand of Rs. 2,61,282 for not reversing Cenvat credit on the sale of plant & machinery. The tribunal found that the revenue failed to prove that the appellant had availed Cenvat credit, leading to the show cause notice being deemed unsustainable. The impugned order was set aside, and the appeal was allowed.