Order date- 20 January 2023

Parties- M/s. S.L. Polypack Private Limited vs Commissioner of CGST & CX, Howrah Commissionerate

Facts -

• The Appellant, M/s. S.L. Polypack Private Limited, is a manufacturer of Plastic Cups and Plastic Plates falling under Tariff Item No.39231090 of the Central Excise Tariff Act, 1985. During the period 2007-08 and 2008-09, the Appellant had received some inputs under the cover of input invoices issued by M/s. L.G. Polymers India Ltd.
• Show Cause Notice was issued on 01.08.2013 on the allegation that invoices do not mention credit registration number of the consignee, registration number of the carrier vehicle and delivery of the goods was made at a place other than the factory.
• It is the case of the Revenue that credit was taken on the basis of ineligible documents which resulted in contravention of Rule 9 of the CENVAT Credit Rules, 2004.  

 Issue -

• Whether the Appellant has correctly availed Cenvat Credit?

Order - 

• Tribunal observed that it is undisputed that the goods covered under the invoices were actually received at the Appellant’s factory and those goods were used for manufacture of their final products. It is also undisputed that Excise Duty was paid on those goods which are subject matter of the invoices. Hence, credit is correctly availed.
• It was held that the substantive benefit cannot be denied on procedural grounds and accordingly the impugned orders cannot be sustained.
• Further the Show Cause Notice was issued on the basis of audit of records maintained by the Appellant and therefore extended period cannot be invoked by alleging suppression since they are also submitting/filing the statutory returns on a regular basis.
• The Appellants have a strong case on limitation and the Show Cause Notice is barred by limitation.