M/S Asian Colour Coated Ispat Ltd vs Cce, Delhi Iii

Customs Excise and Service Tax Appellate Tribunal14 September 2015

CitationExcise Appeal No. 56441 of 2013

Ratio decidendi

The rule this decision rests on

Where a process undertaken on inputs does not amount to manufacture, but the resulting goods are cleared on payment of duty, such payment of duty amounts to reversal of the Cenvat credit availed on those inputs, so that the Cenvat credit cannot be denied to the assessee on that ground.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE & SERVICE TAXAPPELLATE TRIBUNALWest Block No. 2, R.K. Puram, New Delhi 110 066.Principal Bench, New DelhiCOURT NO. IIDATE OF HEARING : 14/09/2015.DATE OF DECISION : 14/09/2015.Excise Appeal No. 56441 of 2013

[Arising out of the Order-in-Original No. 137-138/SA/CCE/2012 dated 18/12/2012 passed by The Commissioner of Central Excise, Delhi III, Gurgaon.]

For Approval and signature :

Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

1. Whether Press Reporters may be allowed to see :

the Order for publication as per Rule 27 of the

CESTAT (Procedure) Rules, 1982?

2. Whether it would be released under Rule 27 of :

the CESTAT (Procedure) Rules, 1982 for

publication in any authoritative report or not?

3. Whether their Lordships wish to see the fair :

copy of the order?

4. Whether order is to be circulated to the :

Department Authorities?

M/s Asian Colour Coated Ispat Ltd. Appellant

Versus

CCE, Delhi III Respondent

Appearance

Shri B.L. Narsimhan, Advocate for the appellant.

Shri S. Nanchuk, Authorized Representative (Jt. CDR) for the Respondent.

CORAM: Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

Final Order No. 52864/2015 Dated : 14/09/2015

Per. Ashok Jindal :-

The issue in the matter is that whether appellant is entitled to avail Cenvat credit on HR/CR Coils which were cleared by the appellant on payment of duty after Slitted and Pickled Hot Rolled Coils or not.

2. Heard the parties and perused the records.

3. The issue has been settled in appellants own case reported in 2015 (317) E.L.T. 538 (Tri. Del.) relying on the decision of this Tribunal in the case of Ajinkya Enterprises vs. CCE reported in 2013 (288) E.L.T. 247 (Tri.), which has been affirmed by the Honble Bombay High Court reported in 2013 (294) E.L.T. 203 (Bom.), wherein it has been held that if activity undertaken by the appellant does not amount to manufacture in that situation if the final product has been cleared on payment of duty in that case payment of duty shall amount to reversal of Cenvat credit on inputs. Therefore, we hold that in this case Cenvat credit cannot be denied to the appellant as payment of duty by the appellant shall amount to reversal of Cenvat credit availed by the appellant. Therefore, we set aside the impugned order and allow the appeal with consequential relief, if any.

(Dictated and pronounced in open court)

(Ashok Jindal)

Member (Judicial)

(B. Ravichandran)

Member (Technical)

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