Custom, Excise & Service Tax Tribunal
M/S.Hira Power & Steel Limited vs Cce, Raipur on 6 August, 2010
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066.
SINGLE MEMBER BENCH
Excise Appeal No.E/1121/2008-SM
(Arising out of Order-in-Appeal No.19/RPR/-I/2008 dated 26.02.2008 passed by the Commissioner of Central Excise (Appeals), Raipur)
Date of Hearing/Decision:06.08.2010
M/s.Hira Power & Steel Limited Appellant
Vs.
CCE, Raipur Respondent
Present for the Appellant: Shri Hemant Bajaj, Advocate
Present for the Respondent: Shri S.R.Meena, SDR
Coram: Honble Mr. D.N.Panda, Judicial Member
ORDER NO._______________
PER: D.N.PANDA
Short dispute in this case arising for consideration is whether the goods which were initially found to be not viable for commercial use, if used later can credit be denied when the output emerging therefrom has suffered excise duty. When such is the question, Revenue has no evidence to answer negatively. Application was made by the assessee on 24.04.2007 submitting to the learned Authority Below that in view of contingency, the goods of above kind were used and manufacture of output was made which has suffered duty
2. Learned Counsel submitted that the letter dated 24.4.2007 was well before the adjudicating authority who did not take cognizance thereof for which the appellant suffered. But only submission of Revenue was that there was no output manufacture using the goods in question for which cenvat credit shall not be admissible.
3. It is noticed that application was made on 24.4.2007 which was six months before the adjudication was done. When adjudication was completed by Order-in-Original dated 15.10.2007, there was no trial run witnessed by Revenue to ascertain whether the goods in question were not usable. Records have not been examined to show that the goods in question were not used and had not resulted with dutiable manufactured output. When such is the feature of this case and Revenue did not rule out usability of the goods in question in manufacture. Thus the goods manufactured out of use of the goods in question which were subject matter of letter dated 24.4.2007 calls for avoiding cascading effect Therefore the appeal succeeds and is allowed.
(D.N.Panda) Judicial Member mk