Availing benefit of Cenvat Credit on inputs, input services and capital goods under Cenvat Credit Rules, 2004.

Last updated: 03 May 2021

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Quick Summary

This case involves M/s. Sundaram Packaging India Pvt. Ltd. who were availing Cenvat credit on inputs, input services, and capital goods. During an audit, it was found they cleared non-excisable goods (empty polythene bags and drums) as waste without paying duty. Relying on a notification, the department demanded reversal of Cenvat credit on these cleared goods, along with interest and penalty. The appellant's appeals against this demand were rejected by the lower authorities.

Court :
CESTAT New Delhi

Brief :
Appellant herein M/s.Sundaram Packaging India Pvt. Ltd. is engaged in manufacture of PP woven fabrics and are also the recipient of few services as that of Goods Transport Agency Service, Manpower Recruitment Agency Service and Legal ConsultancyService etc. They were also availing the benefit of Cenvat Credit oninputs, input services and capital goods under Cenvat Credit Rules,2004. During the course of audit for the period 2016-17, Department noticed that appellant had cleared empty polythenebags of raw-material, empty drum of power oil worth Rs.33,62,307/- in the name of waste sales without payment ofduty, despite that the goods so cleared were non-excisable.

Citation :
Excise Appeal No. 51633 of 2019 [SM]

Daily Limit Reached