M/S.Dadu Pipes Pvt.Ltd vs Cce, Noida
- Case No.Appeal No.E/53164/2014
Ratio decidendi
The rule this decision rests on
The appellant is not required to reverse Cenvat credit taken on GTA services where the inputs on which that service was used are cleared as such, as contemplated under Rule 3(5) of the Cenvat Credit Rules, 2004; the Punjab & Haryana High Court's view in Punjab Steels, that no reversal is required where the inputs are cleared as such, is followed in preference to the contrary Tribunal decision in Lacto Cosmetics. A decision of the Tribunal that is contrary to a High Court's view on the same question is per incuriam and cannot be followed where the binding or persuasive High Court authority is available on the point.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of OIA No.NOI-EXCUS-000-APPL-262-13-14 dt.26.12.13 passed by the CCE (Appeals), Jaipur-II)
Date of Hearing/Decision: 12.05.2015
For Approval & signature:
Honble Mr.Ashok Jindal, Member (Judicial)
1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? No 3. Whether their Lordships wish to see the fair copy of the order? seen 4. Whether order is to be circulated to the Department Authorities? Yes
M/s.Dadu Pipes Pvt.Ltd. Appellant
Vs.
CCE, Noida Respondent
Present for the Appellant: Shri Rajesh Agarwal, in person
Present for the Respondent: Shri R.K.Mishra, AR
Coram: Honble Mr.Ashok Jindal, Member (Judicial)
FINAL ORDER NO.51706/2015
PER: ASHOK JINDAL
The short issue involved in the matter is whether the appellant is required to reverse credit availed on GTA services on HR coils cleared as per Rule 3(5) of Cenvat Credit Rules, 2004.
2. Heard the parties.
3. The appellant has relied on the decision of Punjab & Haryana High Court in the case of CCE, Chandigarh-I vs.Punjab Steels-2010 (260) ELT 521 (P&H) wherein Honble High Court has held that there is no requirement of reversal of credit of GTA services if the inputs are cleared as such.
4. On the other hand learned AR relied on the decision of the Tribunal in the case of Lacto Cosmetics (Vapi) Pvt.Ltd. vs. CCE, Daman-2013 (30) STR 107 (Tri.-Ahmd.) to submit that the appellant is required to reverse credit on GTA services also.
5. I have examined the decision of the Tribunal in the case of Lacto Cosmetics (Vapi) Pvt.Ltd. (supra) as well as the decision of Punjab & Haryana High Court in the case of CCE, Chandigarh-I vs.Punjab Steels (supra). The decision of the Tribunal in the case of Lacto Cosmetics (Vapi) Pvt.Ltd. is per incuriam and is not applicable to the facts of this case. With these terms, the appellant is not required to reverse credit on GTA services as per Rule 3(5) of Cenvat Credit Rules, 2004. Accordingly, the impugned order is set aside and the appeal is allowed with consequential relief.
(Dictated & Pronounced in the open court)
(ASHOK JINDAL)
MEMBER (JUDICIAL)
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