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November 2013

[2013] 37 taxmann.com 41 (Jharkhand) Akshay Steel Works (P.) Ltd vs. Union of India.

By Puloma Dalal, Jayesh Gogri, Mandar Telang, Chartered Accountants
Reading Time 1 mins
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CENVAT credit can be used for pre-deposit of duties demanded under Adjudication Order appealed against.

Facts:

The Commissioner (Appeals) rejected the Appellant’s Appeal on the ground that it failed to deposit the amount as required under the provisions of the Central Excise Act.

The Appellant contended that since it reversed the appropriate amount from unutilised CENVAT credit and gave this information along with the copy of Form-RG 23A Part II to Commissioner Appeals, it has complied with the conditions of pre-deposit.

Held:

Analysing Rule 3 of the CENVAT Credit Rules, 2004 (CCR), the Hon. High Court held that since the law allows the assessee to take the benefit of the credit under any category as mentioned under Sub-Rule(1) of Rule 3 of the CCR and that it does not prohibit the assessee to adjust the said credit against its liability created by an order which was sought to be challenged in appeal requiring the deposit of the amount u/s. 35F of the Central Excise Act, the petition was allowed.

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