Admissibility of Cenvat Credit Determined without Verifying its Use: CESTAT directs Re-adjudication [Read Order]
![Admissibility of Cenvat Credit Determined without Verifying its Use: CESTAT directs Re-adjudication [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/06/Admissibility-Cenvat-Credit-Cenvat-Credit-Determined-CESTAT-directs-Re-adjudication-Re-adjudication-CESTAT-taxscan.jpg "Admissibility of Cenvat Credit Determined without Verifying its Use: CESTAT directs Re-adjudication [Read Order]")
The Ahmedabad bench Customs, Excise and Service Tax Appellate Tribunal (CESTAT) have held re-adjudication since the admissibility of Cenvat Credit was determined without verifying its Use. The issue before the Tribunal is whether the appellant, Oil and Natural Gas Corporation Limited are entitled to Cenvat credit in respect of Angle, Channel, Beam, TMT Bars, HR Steel Coil, HR Steel,...
The Ahmedabad bench Customs, Excise and Service Tax Appellate Tribunal (CESTAT) have held re-adjudication since the admissibility of Cenvat Credit was determined without verifying its Use.
The issue before the Tribunal is whether the appellant, Oil and Natural Gas Corporation Limited are entitled to Cenvat credit in respect of Angle, Channel, Beam, TMT Bars, HR Steel Coil, HR Steel, MS Plates and cement etc. for the period April 2015 to June 2017.
Shri S. Suryanarayanan, Counsel appeared on behalf of the appellant and submitted that the issue is no longer res-integra as after the case is made out, various judgments of High Courts and Tribunals were passed therefore, the credit is admissible. He submitted that all the steel items were used in various plants as supporting structures therefore, the credit is admissible.
Shri G. Kirupanandan, learned Assistant Commissioner (AR) appeared on behalf of the Revenue and reiterated the findings of the impugned order.
On careful consideration of the submissions made by both sides and perusal of the record, it was found that the appellant prima-facie is eligible for Cenvat credit in the light of various judgments.
“However, the Cenvat credit admissibility can be ascertained only after verifying the fact about the use of such steel items and whether the same was used. This aspect was not verified by the Adjudicating Authority therefore, in our considered view the matter needs to be remanded back to the Adjudicating Authority for passing a fresh order after verifying the use of the inputs in various plants as claimed by the appellant.”, the bench held.
A two-member bench comprising Mr Ramesh Nair, Judicial Member and Mr C L Mahar, Technical Member set aside the impugned order and allowed the appeal by way of remand to the Adjudicating Authority.
To Read the full text of the Order CLICK HERE
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