Customs, Excise and Gold Tribunal - Tamil Nadu
Jsw Steel Ltd. - Salem Works vs Cce on 8 August, 2008
ORDER P.G. Chacko, Member (J)
1. After examining the records and hearing both sides, we find that this is a fit case for summary disposal. Accordingly, after dispensing with predeposit, we take up the appeal.
2. This appeal of the assessee is against an order dt. 10.3.08 passed by the ld. Commissioner in adjudication of a show-cause notice dated 7.1.08 denying input service tax credit to the extent of over Rs. 1 crore and demanding equivalent amount of duty on their final products on the ground of irregular availment and utilization of the said credit, and imposing equal amount of penalty on them. It appears from the records that the department found that the above credit had been taken on the strength of inadmissible documents not specified for CENVAT credit purpose under Rule 9 of the CENVAT Credit Rules, 2004. These documents included debit notes, extracts from work contracts etc. The records before us include copies of the relevant invoices. It is claimed by the appellants that the entire credit in question is covered by these documents, which are specified for CENVAT credit purpose under the aforesaid rules. The ld. counsel points out that, on account of preoccupation of the appellants with the annual exercise of accounting for the fiscal 2007-08, he could not file a reply to the SCN or attend the personal hearing arranged by the Commissioner. We have heard the ld. SDR also.
3. Prima facie, the explanation offered by the appellants through their counsel for not having been able to reply to the SCN or to appear before the adjudicating authority is reasonable. In the circumstances, in the interest of justice, we set aside the impugned order and allow this appeal by way of remand directing the ld. commissioner to pass fresh order of adjudication after giving the party a reasonable opportunity of replying to the SCN and of being personally heard. The stay application also gets disposed of.
(Dictated and pronounced in open court)