CESTAT | Order relating to Cenvat Credit on supporting items set aside as no malafide from appellant found

Customs, Excise & Service Tax Appellate Tribunal (CESTAT): The dispute in this appeal was filed before Archana Wadhwa, Member, related to the availability of Cenvat Credit of duty paid on various iron and steel items.

The various iron and steel items according to the Revenue had been utilized as supporting structures. The Lower Authority referred to the Explanation under Section 2(k) of Cenvat Credit Rules and the case of Vandana Global Ltd. v. CCE, 2010(253) ELT 440(Tri-LB) where it was held that such item used for supporting structures are not entitled to the benefit of Cenvat Credit. But it was found that the case referred to above was set aside by Chhattisgarh High Court referred to as Vandana Global Ltd. v. CCE, 2018(16) GSTL 462(Chhattisgarh). The impugned order was assailed for being time-barred.

The Tribunal found the demand to be time-barred and also the case referred was set aside by Chhattisgarh High Court. Admittedly the credit was being availed by the assessee by reflecting the same in the Cenvat Credit. In the circumstance of the case, no malafide can be attributed to the appellant so as to invoke the extended period of limitation. Therefore, the impugned order was set aside. [Sangam India Ltd. v. Commr. of Excise and Service Tax, 2019 SCC OnLine CESTAT 1, dated 08-02-2019]

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