By TIOL News Service

CHENNAI, JULY 31, 2015: THIS is an appeal by assessee against the order of Tribunal disallowing the CENVAT Credit on M S Plates, M S Angles and Channels etc used for construction of plant (reported in 2010-TIOL-1311-CESTAT-MAD) by following the ratio of Larger Bench decision of Tribunal in case of M/s Vandana Global Ltd and others 2010-TIOL-624-CESTAT-DEL-LB .

Before the High Court, the assessee contended that the issue involved in the appeals is covered by a decision of High Court of in C.M.A.No.1265 of 2014, 2014-TIOL-1185-HC-MAD-CX wherein, following the ratio laid down in the decision in Commissioner of Central Excise Jaipur V. Rajasthan Spinning & Weaving Mills Ltd. 2010-TIOL-51-SC-CX and the earlier decision of High Court in C.M.A.No.3101 of 2005 dated 13.12.2012, the High Court dismissed the appeal filed by the Revenue.

Revenue heavily relied upon the decision reported in 2011-TIOL-73-SC-CX (Saraswati Sugar Mills V. Comissioner of Central Excise, Delhi - III)

After hearing both sides, the High Court set aside the order of Tribunal and allowed the appeal by holding that:

This High Court has earlier considered the issue in C.M.A.No.1301 of 2005 dated 31.12.2012 and dismissed the appeal filed by revenue. There is no change in the circumstance and this Court had already held that the decision Saraswati Sugar Mills reported in 2011-TIOL-73-SC-CX is distinguishable on facts. Following the principles laid down in Rajasthan Spinning & Weaving Mills Ltd 2010-TIOL-51-SC-CX and the earlier decision of this Court, impugned order of the Tribunal denying the credit is set aside and the appeal is allowed.

(See 2015-TIOL-1734-HC-MAD-CX)