Custom, Excise & Service Tax Tribunal
M/S Cummins Diesel Sales & Service India ... vs Commissioner Of Central Excise, ... on 6 February, 2014
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT NO. IV Appeal No. E/1686/06 (Arising out of Order-in-Appeal No. P-III/063/2006 dated 5.4.2006 passed by the Commissioner of Central Excise & Customs (Appeals), Pune-III). For approval and signature: Honble Shri P.R. Chandrasekharan, Member (Technical) ======================================================
1. Whether Press Reporters may be allowed to see : No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? 2. Whether it should be released under Rule 27 of the : Yes CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3. Whether their Lordships wish to see the fair copy : Seen of the order? 4. Whether order is to be circulated to the Departmental : Yes authorities? ====================================================== M/s Cummins Diesel Sales & Service India Ltd. Appellant Vs. Commissioner of Central Excise, Pune-III Respondent Appearance: Shri Prasad Paranjape Advocate for Appellant Shri V.C. Khole, Jt. Commr. (AR) for Respondent CORAM: SHRI P.R. CHANDRASEKHARAN, MEMBER (TECHNICAL) Date of Hearing: 06.02.2014 Date of Decision: 06.02.2014 ORDER NO. Per: Shri P.R. Chandrasekharan, Member (Technical)
The appeal is directed against Order-in-Appeal No. P-III/063/2006 dated 5.4.2006 passed by the Commissioner of Central Excise & Customs (Appeals), Pune-III.
2. The learned lower appellate authority vide the said order has denied CENVAT Credit of Rs.13,95,414/- and has also ordered to recover the same along with interest on the ground that the supplier of the goods namely, M/s Amul Industries Pvt. Ltd. is not a manufacturer. Therefore, the duty paid by the supplier is only a deposit and not the duty. Aggrieved of the same, the appellant is before me.
3. The learned Counsel for the appellant submits that it is not in dispute that the appellant procured the goods from M/s Amul Industries Pvt. Ltd. on payment of duty and the appellant has taken the credit of duty paid by M/s Amul Industries Pvt. Ltd. for manufacturing of dutiable final products. The authority-in-charge of the recipient of inputs has no jurisdiction to dispute or challenge the payment of duty by the supplier. There is also nothing on record to show that whether any final decision has been taken with respect to the question that M/s Amul Industries Pvt. Ltd., Rajkot is a manufacturer or not and the demand is based only on an allegation.
3.1 The learned Counsel relies on the decisions of the Tribunal in the case of Hylite Cables 2007 (212) ELT 284 (Tri-Ahmd),Synmedic Laboratories 2013 (294) ELT 147 (Tri-Del), Hindustan Lever Ltd. 2007 (211) ELT 295 (Tri-Ahmd), Indian Oil Corporation Ltd. 2006 (206) ELT 533 (Tri-Bang) and Cipla Ltd. 2011 (273) ELT 391 (Tri-Mum). In all these decisions, it has been laid down that once the recipient has received the goods on payment of duty, the CENVAT Credit cannot be denied on the ground that the supplier of the inputs was not required to pay excise duty on the goods supplied. Accordingly, he pleads for allowing the appeal.
4. The learned Jt. Commissioner (AR) appearing for the Revenue reiterates the findings of the lower authorities.
5. I have carefully considered the submissions made by both sides.
5.1 It is not in dispute in the present case that the goods supplied by M/s Amul Industries Pvt. Ltd. is an excisable product and the appellant procured the goods on payment of excise duty. In the decisions relied upon by the appellant (supra), it has been held that once the supplier of the goods had discharged the duty liability, the recipient can take CENVAT Credit of the duty paid and use the same in further manufacture of dutiable final product. Ratio of these decisions would apply to the facts of the present case also. Accordingly, I set aside the impugned order and allow the appeal with consequential relief, if any.
(Dictated and pronounced in Court) (P.R. Chandrasekharan) Member (Technical) Sinha 3