Excise – Cestat Kolkata: Iron and steel, cement, welding electrodes etc. used in the factory in the manufacture of storage tank and also for pollution control system are Inputs and are eligible for CENVAT credit – Appeal allowed [Order attached]
Order Date – 14 March 2023
Parties: M/s. Uniglobal Papers Private Limited Vs Commissioner of CGST & CX, Haldia Commissionerate
- The Appellant, M/s. Uniglobal Papers Private Limited, is engaged in the manufacture of Kraft Paper and Duplex Paper.
- A communication dated 28.08.2012 asking for the details of CENVAT Credit availed by them for the period 2007-08 and 2008-09 was sent to the Appellant. The assessee submitted the details of the CENVAT Credit availed by them on the said items vide reply dated 12.09.2022. Subsequently, a Show Cause Notice dated 28.09.2022 was issued proposing to deny and recovery of CENVAT Credit.
- Whether the denial of CENVAT credit is in order?
- The Tribunal held that the issue is no more res integra since the period of dispute is 2007-08 and 2008-09 and the amendment to the definition of ‘input’ was made on 07.07.2009 and which was made to be not retrospective.
- Relying on the decision of the Tribunal in the case of Singhal Enterprises Pvt.Ltd. v. Commr. Of Cus. & C.Ex., Raipur reported in 2016 (341) E.L.T. 372 (Tri.-Del.). the Tribunal held that in this case the disputed items of iron and steel, cement, welding electrodes etc. were used in the factory in the manufacture of storage tank and also for pollution control system and thus are eligible as inputs and are squarely covered by the definition of ‘input’.
- The Appeal filed by the Appellant is allowed