The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), CESTAT set aside demand of cenvat credit of One lakh on manufacture of Emulsion Matrix.
The Appellant, M/s Prasad Explosive and Chemicals is engaged in the manufacture of “Emulsion Matrix (bulk explosive)”. The Appellant is one of the prime suppliers of bulk explosive to Central Coalfields Limited and other similar mining Companies, who are using such explosive at their mines for the purposes of blasting etc. For the purposes of manufacturing of the aforesaid product i.e. Emulsion Matrix (bulk explosive)”, the Appellants are using the various kinds of raw materials and also using special kind of plant/machinery.
A Show-cause notice was issued alleging wrong availment of cenvat credit during the period January, 2013 to December, 2013. Show-cause notice proposed to disallow and recover cenvat credit amounting to Rs.1,05,990/- along with interest and imposition of penalty.
The Adjudicating Authority observed that the Certificate was issued by a Chartered Engineer, is not corroborated with evidence on technical diagram with details as to how and where these items have been used and further emphasized that the assessee had failed to provide any evidence regarding the use of such goods, on which credit had been taken to have qualified as components, spares and accessories of the goods specified under the provisions of Rule 2(a) (i) and (ii) of the Central Excise Act, 1944.
A Single Bench consisting of P K Choudhary, Judicial Member observed that “the Adjudicating Authority has relied upon the Larger Bench decision of the Tribunal in the case of Vandana Global for dis-allowance of cenvat credit as claimed by the Appellant, which is not at all applicable to the facts of the present case. I am of the view that the impugned demand cannot sustain and accordingly, the same is set aside.”
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