TaxTMI 
TaxTMI 
2025 (10) TMI 118
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....order by MEPZ, Chennai. From 25.10.2010, the Assessee was clearing their finished goods - Cotton Yarn & Cotton/PVA mixed yarn at Nil rate of duty by availing exemption under Notification No.30/2004-CE dated 09.07.2004 and were filing E-1 returns. On verification of the accounts of the unit by CERA, the following issues were noticed by the Audit: The Assessee had wrongly taken the ineligible CENVAT credit arising out of duties paid on their capital goods at the time of debonding and credit lying in balance at the time of opting for clearing their finished goods at Nil rate of duty by opting Notification No.30/2004-CE dated 09.07.2004. Further the Assessee had utilized the said credit towards discharging their duty liability on their finished....
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....ears to have filed Appeal before the Commissioner (Appeals) who vide Order-in-Appeal No. 75/2013-SLM-CEX dated 21.11.2013 appears to have upheld in toto the confirmed demands and against this OIA, the Appellant filed Appeals before this forum. These Appeals came to be disposed of vide Final Order No.41534 to 41536/2015 dated 12.11.2015, by allowing the Appeals. 3. Strangely and very soon thereafter, another SCN dated 19.11.2015 was issued wherein, it was proposed to : (i) Disallow CENVAT credit taken after de-bonding; (ii) Duty demand on the finished goods [cleared during October 2011 and November 2011] (iii) Recover duty paid on the capital goods removed as such [during November 2011 and January 2012] by ....
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....ed in litigation. In response to a query by the Revenue through Superintendent the letter dated 08.08.2012, particularly Annexure No.2 at page 55 of the Paper Book, contains these details and hence, Revenue cannot plead ignorance of these documents. Moreover, the present SCN has also relied on this document, as is clear from para 14 of the SCN and paras 2.4 & 2.5 of therein specifically point to the ER-1 returns for October and November, 2011. The above also gives an impression that ER-1 returns are the only documents which contained all the factual details, which were picked up by the Revenue to propose disallowance including suppression and demand consequent duty thereupon. 8. We find that in respect of 3 SCNs issued earlier which culm....
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....e to nil rate of duty as has been held by the Hon'ble High Court in the case of CCE, Chennai Vs CESTAT, Chennai - 2015 (322) ELT 697 (Mad.). Therefore, denial of capital goods credit is contrary to law' and it is held by the Bench as under : "5. The capital goods of the appellant were used to manufacture dutiable intermediary for the EOU which suffered duty partly on the value addition thereto by the principal manufacturer when cleared in DT. Therefore, denial of capital goods credit to the appellant is unwarranted. Accordingly, all the three appeals are allowed." 9. The above order appears to have become final with no further Appeal and hence, the issue raised and answered therein will have to be considered and applied to the p....