Order date – 15 November 2022

 Facts –

• The Appellant, Sunrise Containers Ltd, is engaged in the manufacture of Pet preforms under the Central Excise Tariff Act, 1985. The appellant has purchased the input on payment of central excise duty from M/s. Reliance Industries Ltd against the invalidation of advance authorization under various advance licenses.
• The appellant has availed cenvat credit during the period August 2010 to October 2010 against such payment of duty by M/s. Reliance Industries Ltd.
• The department alleged that the purchase against advance authorization are exempted under para 4.1 of FTP 2009-14 which enables duty free import of inputs required for production of goods to be exported. Therefore, the duty paid by M/s. Reliance Industries Ltd. is incorrect consequently, the appellant are not entitled for the cenvat credit. Accordingly, the adjudicating authority demanded the amount of cenvat credit

Issue –

• Whether the Appellant is eligible for Cenvat Credit ? 

Order –

• The Tribunal finds that there is no dispute on the fact that the supplier M/s. Reliance Industries Ltd. has discharged the duty as per law. The inputs were received by the appellant for use in the manufacture of final product therefore, the sufficient compliance of the provision of Cenvat Credit Rules, 2004 stood made.
• Once the supplier has paid the duty whether it is payable or otherwise, the said duty is clearly admissible as cenvat credit. In other words the assessment of duty payment on the part of the supplier cannot be disputed at the end of the recipient of the input there for, there is no reason to deny the cenvat credit once the duty paid inputs were received by the appellant.
• The Tribunal relied on the decision of the Hon’ble Supreme Court judgment in the case of MDS Switchgear, wherein it was held that the rules entitled the receipt manufacturer to avail of the benefit of the duty paid by the supplier manufacturer. 
• Considering the above judgment the tribunal is in view that the issue is settled once the duty was paid by the supplier even though the same was payable or otherwise the same cannot be disputed at the end of the recipient of input accordingly, the cenvat credit cannot be disputed.
• The Appeal was allowed.