Custom, Excise & Service Tax Tribunal
Cce, Trichy vs M/S. Dalmia Cement (Bharat) Ltd on 12 November, 2015
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/41526/2014
(Arising out of Order-in-Appeal No.27/2014 dated 25.3.2014 passed by the Commissioner of Central Excise (Appeals), Trichy)
CCE, Trichy Appellant
Vs.
M/s. Dalmia Cement (Bharat) Ltd. Respondent
Appearance Shri B. Balamurugan, AC (AR) for the Appellant Shri S. Gokarnesan, Advocate for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 12.11.2015 Final Order No. 41533 / 2015 Revenue says that when the input credit was taken on the inputs, reversal thereof is warranted when those become obsolete.
2. Learned counsel brings out that reversal of CENVAT credit availed on the written off inputs is enacted in the statute book from 11.5.2007. Therefore, the case of the respondent being prior to that period, calling for reversal is unwarranted.
3. Law is well settled that declaratory law is prospective in nature and reversal being the action intending incurring of liability, the amendment of Rule 3(5B) of the CENVAT Credit Rules, 2004 cannot be read as retrospective in character following the law laid down in Union of India Vs. Martin Lottery Agencies Ltd. 2009 (14) STR 593 (SC). Therefore, when there was no law during the material period for reversal of credit calling for reversal of the CENVAT credit taken on the inputs is unwarranted.
4. Law relating to CENVAT credit is also that no one to one relationship between the input and output is necessary. Once input enters into manufacturing place and used in manufacture there is no denial of CENVAT credit as has been held in the case of Collector of Central Excise, Pune Vs. Dai Ichi Karkaria 1999 (112) ELT 353 (SC) for which the respondent is not required to reverse the CENVAT credit on the obsolete stores.
5. Accordingly, Revenue appeal is dismissed.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2