Order date: 20 January,2023

Parties: M/s. Shakambari Overseas Traders Private Limited vs Commissioner of CGST & CX, Bolpur Commissionerate.

Facts

• The Appellant, M/s Shakambari Overseas Traders Private Limited was issued show cause notice for the period April, 2009 to October, 2009 for irregular availment of CENVAT Credit against 1372.35 MT of TMT Bars (cutting), Tore Steel/MS Tore (cutting) of 24,59,842/-.
• It was alleged that the above mentioned items of steels, cannot be treated as any input used for the manufacture of their finished goods i.e. MS Ingot.

Issue-

•  Whether the benefit of CENVAT Credit be denied?

Order-

• The Tribunal observed that there is no restriction in the CENVAT Credit Rules that the Appellants should not use the prime quality materials for the manufacture of final products. As long as there is no dispute regarding the receipt and consumption of the inputs, duty-paid character thereof, the benefit of the CENVAT Credit cannot be denied to the Appellant.
• Hence, impugned Orders are set aside and appeal allowed.