Order Date – 09 February 2023

Parties: Posco Poggenamp Electrical Steel Pvt Limited Vs Commissioner of Central Excise & ST, Vadodara-i

Facts –

• The Appellant, Posco Poggenamp Electrical Steel Pvt Limited, is engaged in manufacturing of excisable goods i.e. Parts of Transformer" and "CRGO Core Lamination" and also engaged in the trading of goods which is a declared service in terms of Section 66E(a) of the Finance Act, 1994.
• During the audit it was found that the appellant has traded the goods which is deemed exempted service and accordingly the appellant is liable to pay 6% / 7% of the value of exempted goods in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004. 

Issue –

• Whether the appellant had availed Cenvat credit on goods which is deemed exempted?

Order –

• The Tribunal held that from the records it is clear that the appellant has paid the excise duty/ Cenvat on the clearances on which the demand was raised in the present case. Hence there is no case of demand under Rule 6(3)(i) of Cenvat Credit Rules, 2004.
• However, both the lower authorities on flimsy ground that as details were not given by the appellant, confirmed the demand. The Revenue is at liberty to verify calculation of payment and / or reversal of Cenvat in respect of inputs cleared as such and clearances on which no Cenvat credit was availed.
• Hence the appeal is allowed.