2025 (4) TMI 812

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....paid on Security Services. 2. The brief facts are M/s. Gem Granites, the Appellant is a 100% export oriented unit (EOU) engaged in manufacture and export of cut and polish granites in the form of dimensional blocks and slabs. For the purpose of the said activities, appellant had imported and domestically procured mobile cranes, excavators, forks, lifts, compressors, generators and other material handling equipment without payment of duty. The said equipment was primarily used to carry out the manufacturing activity. The appellant used High Speed Diesel as fuel for the said machines, which was procured from the DTA units. Since the fuel was procured on payment of tax from DTA units, appellant availed credit of the duty paid on the High Sp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sequent to the C.B.E. & C. Circular No. 799/32/2004-CX, dated 23-9-2004. This Circular also makes an EOU entitled to claim refund under Rule 5 of Cenvat Credit Rules, 2004, if Cenvat credit available with them could not be utilized. 6.2 We find that for the appellants, who are an EOU, the definition of an input given in Rule 2(k) of Cenvat Credit Rules, 2004 cannot restrict the entitlement, when they are taking Cenvat credit in terms of Notification No. 22/2003, dated 31-3-2003. More so, when the decisions of the Tribunal viz., Hindustan Unilever Ltd. Vs. CCE, Bhavnagar (supra) and CCE Vs. Jagmini Micro Knit Pvt. Ltd. (supra) make it clear that appellants as an EOU can claim Cenvat credit for the duty paid on HSD oil used as fuel a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t service was utilised for the EOU only and when no dispute has been raised regarding validity of credit availed on security services at any juncture, eligibility of the same cannot be questioned at the time of seeking refund. If the respondent has reason to belief that the credit taken by the appellant was ineligible credit, respondent ought to have initiated proceedings under Section 11A of Central Excise Act, 1944 read with Rule 14 of Cenvat Credit Rules, 2004. Since the respondent failed to invoke the appropriate provision, raising issues at the time of Adjudicating refund application under Rule 5 of Cenvat Credit Rules, 2004 is unsustainable. The Learned Counsel in support relied on the decision of the Hon'ble High Court of Telangana i....