High Court overturns CENVAT Credit order, remands for reconsideration.

The High Court set aside the order demanding CENVAT Credit, finding it contrary to the Tribunal's directions. The matter was remanded for reconsideration by the Additional Commissioner in line with the Tribunal's order, focusing on quantifying the credit available.

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Issues:
Challenge to order under Section 11A of the Central Excise Act, 1944 for CENVAT Credit entitlement.

Analysis:
The judgment pertains to a petition challenging an order passed by the Additional Commissioner, Central GST Commissionerate, demanding CENVAT Credit of Rs. 21.85 lakhs for duty paid on Furnace Oil used for generating steam supplied to a sister concern. The impugned order was based on the belief that the petitioner was not entitled to the CENVAT Credit for this specific usage. The order in question was a result of a previous order by the Customs, Excise & Service Tax Appellate Tribunal, which had allowed the petitioner to claim CENVAT Credit for the duty paid on Furnace Oil used for steam generation. However, the Tribunal's order had remanded the issue of determining the final products cleared by the sister concern on payment of duty to ascertain the extent of CENVAT Credit available.

The parties agreed that the impugned order went beyond the Tribunal's remand order by re-adjudicating the issue on merits instead of focusing solely on quantifying the CENVAT Credit available. Consequently, the High Court found that the impugned order was contrary to the Tribunal's directions and set it aside. The High Court ruled that the issue of determining the CENVAT Credit available to the petitioner should be reconsidered by the Additional Commissioner in accordance with the Tribunal's order from 17th July, 2015. The petition was disposed of with this direction for fresh determination of the CENVAT Credit entitlement.

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