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September 2012

2012 (27) STR 94 (P & H) V.G. Steel Industry v. Commissioner of Central Excise.

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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CENVAT credit – taken in respect of duty which had been paid in excess – Can credit be denied to the person who availed? – Held, No.

Facts:
The appellant paid duty on goods purchased in excess of the duty payable on such purchases. The supplier had paid such duty to the Government and raised the invoices for such duty. Moreover, no refund was granted to anyone in respect of such duty. Department denied the credit in the hands of the appellant, arguing that duty paid more than due can be available as refund, but not as credit. The order was confirmed by the First and the Second appellate authorities. The appellant preferred appeal before the High Court and relied upon the following judgments of the same Court as well as other Courts:
• Commissioner vs. CEGAT 202 ELT 753 (Mad)
• Commissioner vs. Guwahati Carbons Ltd. Appeal no. 42/2012 (P & H)
• Commissioner vs. Ranbaxy Labs Ltd. 203 ELT 213 (P & H)
• Commissioner vs. Swaraj Automotives Ltd. 139 ELT 504 (P & H)

Held:
The Court held that the counsel of the respondent was unable to distinguish the applicability of the above judgments and therefore, ordered in favour of the appellant.

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