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PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
CX - Reversal of credit subsequently is no ground for denying benefit of notification 30/2004-CE : CESTAT

By TIOL News Service

MUMBAI, AUG 12, 2017: THIS is a Revenue appeal.

It was the case of Revenue that the respondent had availed CENVAT credit on the common inputs which are used for the manufacture of textile and textile articles and accordingly, they are not eligible for the benefit of the notification 30/2004-CE whereas the assessee contended (and which contention was accepted by the Commissioner(A)) that having reversed the CENVAT credit they had satisfied the condition of non-availment and are, therefore, entitled to the exemption. Support was drawn from the apex court decision in Chandrapur Magnet Wires (P) Ltd - 2002-TIOL-41-SC-CX.

As mentioned, Revenue is in appeal before CESTAT and submits that the conditions of the notification No. 30/2004-CE are very clear and the said conditions implied that respondent should not have availed CENVAT credit on the inputs; that the Supreme Court in the case of Eagle Flask Industries Ltd - 2004-TIOL-74-SC-CX; Mahaan Dairies - 2004-TIOL-52-SC-CX have specifically laid down that exemption notification should be strictly construed and conditions thereof should be complied if assessee wishes to avail the benefit of the same.

The respondent submitted that identical issue has been decided in favour of the assessee (in cases of Spentex Industries, Omkar Textile Mills ) holding that once the credit attributable to the inputs used in the goods cleared by availing benefit of Notification No. 30/2004-CE is reversed, the conditions of the notification are met.

The Bench observed –

"6. …, we find that Revenue's appeal is devoid of merits for more than one reason. Firstly, there is no dispute that the respondent had reversed the CENVAT credit attributable to the inputs which are consumed in the manufacture of final goods which are cleared by availing benefit of Notification No. 30/2004-CE. The said notification No. 30/2004-CE only states about non-availment of the CENVAT credit of the duty paid on inputs. Reversal of credit subsequently by the respondent is accepted and such reversal of credit is held as satisfying the conditions of the notification…"

Noting that the case laws cited by the appellant are directly on the issue and binding on the Bench, the Revenue appeal was rejected but not before observing that the case laws cited by the AR were based on totally different facts.

(See 2017-TIOL-2907-CESTAT-MUM)


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