Custom, Excise & Service Tax Tribunal
M/S. Sree Ram Engineering Works vs Cce, Coimbatore on 28 June, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/40403/2015
(Arising out of Order-in-Appeal No.235/2014 dated 20.11.2014 passed by the Commissioner of Central Excise (Appeals), Coimbatore)
M/s. Sree Ram Engineering Works Appellant
Vs.
CCE, Coimbatore Respondent
Appearance Ms. D. Naveena, Advocate for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 28.06.2016 Final Order No. 41055 / 2016 Appellant explains that CENVAT credit of Rs.74,746/- has been disallowed on the ground that certain debit notes were issued by the appellant. There is no whisper in the show cause notice as to whether such debit notes have any way affected the duty element paid by the appellant to the seller. In absence of allegation and evidence, that it is understanding between the parties to take refund of the duty raising debit note, there cannot be suspicion or surmise to disallow the CENVAT credit availed by. Eligibility of the CENVAT credit is also not challenged by Revenue.
2. Revenue supports the adjudication on the ground that whenever debit note was issued that has affected interest of Revenue.
3. Heard both sides and perused the records.
4. There is no material on record to show that through the modus operandi of issuance of the debit note, the appellant had enabled the supplier to take refund of the duty element if any. The appellant when explains that the debit notes does not relate to duty element and the CENVAT credit was availed on input and input service used in the manufacture, in absence of evidence to the contrary the adjudication fails. Accordingly, the appeal is allowed. (Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2