Custom, Excise & Service Tax Tribunal
C.C.E. & S.Tax, Meerut Ii vs Honda Siel Power Products Ltd on 18 July, 2014
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Block No.2, R.K.Puram, New Delhi COURT-III Date of hearing/decision: 18.7.2014 Central Excise Appeal No.1018 of 2005 Arising out of the order-in-original No.02/Comm./M-II/2004 dated 19.2.2004 passed by the Commissioner , Central Excise, Meerut II. For Approval and Signature: Honble Ms. Archana Wadhwa, Judicial Member Honble Mr. Rakesh Kumar, Technical Member 1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 26 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should be released under Rule 26 of 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 Departmental authorities? Yes C.C.E. & S.Tax, Meerut II .. Appellant/Revenue Vs. Honda Siel Power Products Ltd. .. Respondent
Appearance:
Present Shri M.S. Negi, A.R. for the Revenue Present Shri Rahul Tangri, Advocate for the respondent Coram: Honble Ms. Archana Wadhwa, Judicial Member Honble Mr. Rakesh Kumar, Technical Member Final Order No.52892/2014 Per Archana Wadhwa:
Being aggrieved with the order passed by Commissioner of Central Excise, Meerut II, Revenue has filed the present appeal. After hearing both the sides, we find respondents are engaged in the manufacture of portable water pump and parts thereof. The respondents are exempted under Notification No.10/2002 dated 1.3.2002 prescribing the concessional rate of duty at 4% subject to the condition that no credit of duty paid on the inputs and capital goods exclusively used in the manufacture of these goods has been taken.
2. As the respondents were also manufacturing parts of the P.D pumps as also portable gensets etc. , they were availing cenvat credit of duty paid on the inputs, which are common in both the types of goods. However, for the purpose of availment of concessional rate in respect of pumps , the respondent reversed the proportionate credit of duty paid on the inputs used in the manufacture of said pumps.
3. Revenue on the ground of such reversal after clearance of the goods proposed to deny benefit of the exemption Notification and raised the demand of duty of Rs.72,66,498/-. Commissioner, while adjudicating the show cause notice vacated the same by following Honble Supreme Court in the case of M/s Chandrapur Magnet Wires (P) Ltd. as also some other decisions wherein it was held that if the credit taken is reversed the same would amount to a situation as if no credit was ever availed.
4. Revenue being aggrieved with the said order of Commissioner filed the present appeal on the sole ground that said reversal of the credit was after the clearance of the goods.
5. We find that Revenue is otherwise not disputing the fact of reversal of the credit or quantum of reversal. Distinction made by Revenue from the decision of Honble Supreme Court in the case of M/s Chandrapur Magnet Wires (P) Ltd. on the basis of time of reversal cannot be appreciated. As long as the reversal stands made by the assessee without utilising the credit, we find no reason to take a different view. Accordingly, the appeal filed by Revenue is rejected.
(Archana Wadhwa) Judicial Member (Rakesh Kumar) Technical Member scd/ 3