Excise – Cestat Ahmedabad: In the SCN there is no evidence even of a sample case that the appellant have availed Cenvat credit on scrap of steel material at the time of use thereof, hence demand is set aside – Appeal allowed [Order attached]
Order date - 19 January 2023
SUN PHARMACEUTICALS INDUSTRIES LIMITED Vs C.C.E. & S.T.-VADODARA-I
- The appellants, Sun Pharmaceuticals Industries Limited are engaged in the manufacture of medicaments.
- At the time of maintenance of the plant and machineries they undertook the activity to change old pipes, metal sheets, TMT Bars, steel bars, Beams, Angels connected to those machineries.
- The appellant on removal of this waste and scrap is required to pay the duty in terms of Rule 3(5A) of Cenvat Credit Rules, 2004.
- Whether the appellant is entitled to Cenvat credit on the goods at the time of use thereof in their machineries?
- The Tribunal finds that the department raised the demand assuming that the appellant have taken Cenvat credit on steel material at the time of use thereof. Therefore, the demand was raised on the scrap of such material.
- The tribunal unable to understand what more material can be provided by the appellant to establish the fact that the Cenvat credit has not been availed.
- The appellant have submitted the purchase register and the Cenvat register for the relevant period from which, it can be clearly established that the appellant have not availed the cenvat credit on the goods except on the pipes. Hence, the tribunal was fully convinced with the appellant’s submission that they have not availed any Cenvat credit on the goods on which the demand was raised.
- The order attached.