TaxTMI 
TaxTMI 
2024 (7) TMI 184
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.... : - "6. We have considered the rival contentions and perused the record. It is not disputed by the Department that originally the cenvat credit was rightly claimed by the appellant. The question is whether the providing of the relevant inputs by the appellant to the job contractor for user for completion of contract work, would amount to the transfer of inputs to the third party which may require the appellant to reverse the cenvat credit relating to those inputs. This issue is basically a question of fact. For resolving this issue, it would be necessary to scrutinize the contract between appellant and job contractors as also the actual transactions, which have taken place. Admittedly, the Adjudicating Authority has not cared to refer th....
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.... Construction Ltd., Udaipur. For this purpose, the appellant supplied input and capital goods such as explosives, detonators, lubricants, components, pipes and rods and others goods etc., on which they availed the cenvat credit. Show cause notice dated 1.8.2008 was issued alleging that the appellants were liable to reverse the credit availed on inputs and capital goods removed as such under Rule 3(5) of CCR as these goods were transferred by the appellant to the contractors for execution of both contracts and, therefore, the appellant was required to pay an amount equal to the cenvat credit availed on duty paid on these items under Rule 3(5) of CCR. The show cause notice was adjudicated by the order-inoriginal dated 16.11.2009, whereby the ....
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....ating Authority, which are as under:- "5.8 I further find that recovery of credit already taken can be effected if the inputs are not used in or in relation to the manufacture of final products or are removed as such, or capital goods have not been utilized within the factory or have been removed as such; in these circumstances alone, the cenvat credit allowed can be recovered. The show cause notice itself admits that the goods have been used for undertaking mining activities on behalf of the assessee. As such there is no removal of inputs or capital goods and there is no question of any reversal under rule 3(5) of the Cenvat Credit Rules 2004. Therefore, credit cannot be denied in this case. 5.9 I further find in the show cause notice....
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....ch revealed that during the impugned period the material, equipments, facilities, explosives and detonators were provided by the assessee free of cost to the contractors, for use in the work of their company. In view of the above, it cannot be said that the assessee has sold these items to contractors as there is evidence of free supply of these items by the assessee to the contractors during the period of dispute." From the impugned order, we find that though the final order of the Tribunal dated 9.5.2017 was taken note of by the Adjudicating Authority and instead of following the same, it was completely ignored on the ground that the said order was not accepted by the Department and an appeal was preferred before the High Court, which w....