CORDS CABLE INDUSTRIES LTD. Vs. COMMR. OF C. EX. & SERVICE TAX, JAIPUR-I
LAWS(CE)-2015-2-76
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 26,2015

Cords Cable Industries Ltd. Appellant
VERSUS
Commr. Of C. Ex. And Service Tax, Jaipur -I Respondents

JUDGEMENT

- (1.)Ashok Jindal, Member (J)
(2.)THE appellant has filed this appeal against the impugned order denying availment of Cenvat credit on the basis of debit entry in RG 23A Part II amount holding that same is not a proper document to avail Cenvat credit. The facts of the case are that appellant is a manufacturer of power cable from copper rods. The appellant obtained one export order for which they procured certain quantity of copper rods duty free for the goods for export under bond without payment of duty. The contention of the appellant is that their export order was cancelled. Therefore, they could not export the full quantity sought to be exported under bond and the part of the manufactured goods were cleared under domestic market on payment of duty. Thereafter, they sought clarification from the department that as they have not exported the full quantity of goods manufactured from the inputs procured duty free and cleared in the domestic market on payment of duty. Therefore, they may be allowed to take Cenvat credit on inputs involved in the finished goods cleared in domestic market as no intimation was received by the appellant, appellant took Cenvat credit of inputs attributed to finished goods cleared in domestic market by debit entry in RG 23A Part II register. During the course of audit, it was pointed out and show cause notice was issued to deny the Cenvat credit on inputs attributed to finished goods cleared in domestic market which was sought to be denied on the premise that making debit entry in RG 23A Part II register is not a proper to avail Cenvat credit as per Cenvat Credit Rules, 2004. Adjudication took place, demand along with interest and equivalent amount of penalty was confirmed. Therefore, appellant is before me.
Heard the parties, Considered their submissions in detail. As there is no dispute that the inputs were excisable and under bond, the appellant procured these goods duty free but manufactured goods had been cleared on payment of duty. In these circumstances, the inputs which have been procured by the appellant duty free, is entitled to take Cenvat credit thereon. In these circumstances, I hold that appellant has correctly taken the Cenvat credit of inputs attributed to export goods cleared in domestic market by way of debit entry in RG 23A Part II register. In these circumstances, I set aside the impugned order and allow the appeal with consequential relief, if any.

(Dictated and pronounced in the open Court)

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