Custom, Excise & Service Tax Tribunal
M/S J.B. Chemicals & Pharmaceuticals ... vs Commissioner Of C.Ex. & S.Tax on 23 September, 2016
In The Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad Appeal No.E/13648/2013-SM [Arising out of OIA No.CCEA-SRT-II/SSP-153/2013-14 u/s 35A(3) (Final Order), dt.05.08.2013, passed by Commissioner, C.Ex. & S.Tax, Surat-II] M/s J.B. Chemicals & Pharmaceuticals Ltd Appellant Vs Commissioner of C.Ex. & S.Tax, Surat-II Respondent
Represented by:
For Appellant: Shri Yogesh B. Desai, Advocate For Respondent: Shri T.K. Sikdar, A.R. For approval and signature:
Honble Dr. D.M. Misra, Member (Judicial)
1. Whether Press Reporters may be allowed to see the No Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should 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 Seen the order?
4. Whether order is to be circulated to the Departmental Yes authorities?
CORAM:
HONBLE DR. D.M. MISRA, MEMBER (JUDICIAL) Date of Hearing/Decision:23.09.2016 Order No.A/10981/2016, dt.23.09.2016 Per: Dr. D.M. Misra Heard both sides.
2. This appeal is filed against OIA No.CCEA-SRT-II/SSP-153/2013-14 u/s 35A(3) (Final Order), dt.05.08.2013, passed by Commissioner, C.Ex. & S.Tax, Surat-II.
3. Briefly stated the facts of the case are that the Appellant had availed total CENVAT credit of Rs.2,80,780/- during the period April 2008 to Marh 2009 on the invoices issued in the name of their another division viz. M/s Unique Pharma Laboratory. The inputs were received and utilized in or in relation to the manufacture of finished product in their factory. Alleging that the document on which credit availed, since not in their name and in the name of their other unit, demand notice was issued for recovery of credit with proposal for imposition of penalty. On adjudication, the demand was confirmed and penalty of Rs.20,000/- was imposed. Aggrieved by the said order, they filed an appeal before the learned Commissioner (Appeals), who upheld the order of the Adjudicating Authority and rejected their appeal. Hence, the present appeal.
4. The learned Advocate for the Appellant submits that all the 39 invoices which were in the name of their other Unit was later corrected by incorporating the Appellants name as consignee, duly endorsed by the input supplier. It is his contention that there is no dispute about the receipt of the inputs in the factory and its utilization in the manufacture of finished goods. Therefore, the CENVAT Credit cannot be denied on the invoices corrected later, entering the Appellants name in the same. He submits that even though the corrected invoice copies were produced before the Adjudicating Authority as well as before the learned Commissioner (Appeals), the same were not considered and the demand was confirmed. In support of his contention that the corrected invoice copies are valid for availing CENVAT Credit, the learned Advocate referred to the judgment of the Tribunal in the case of CCE Salem Vs Chemplast Sanmar Ltd 2007 (208) ELT (Tri-Che).
5. The learned Authorized Representative for the Revenue reiterates the findings of the learned Commissioner (Appeals).
6. I find that the only objection raise by the Department in disallowing CENVAT Credit on the disputed 39 invoices was that these invoices being initially in the name of another division of the Appellant and not in the name of the Appellant, CENVAT Credit cannot be admissible. I find that the Appellant later corrected the invoices from the input supplier by incorporating the name of the unit where the said inputs were received and utilized in the manufacture of final products. I find that the issue is covered by the judgment of the Tribunal in the case of Chemplast Sanmar Ltd (supra). In the result, the impugned order being devoid of merit is set aside and the appeal is allowed with consequential relief, if any, as per law.
(Dictated and pronounced in the open court) (Dr. D.M. Misra) Member (Judicial) Cbb 3