Neelikon Food Dyes And Chemicals Ltd. Versus Commissioner of CGST, Belapur
Central Excise
2018 (3) TMI 1420 – CESTAT MUMBAI – 2018 (364) E.L.T. 989 (Tri. – Mumbai)
CESTAT MUMBAI – AT
Dated:- 7-3-2018
E/87676/2017 – A/85492/2018
Central Excise
Ms. Archana Wadhwa, Member (Judicial)
Shri Bharat Raichandani, Advocate – for Appellant
Shri M.R. Melvin, Asst. Commr (AR) – for Respondent
ORDER
Per: Archana Wadhwa
The appellant manufacture synthetic food colours and also avails the services from various service providers. It is seen that the appellant was under obligation to pay taxes on such services on reverse charge mechanism which were not paid by them. Subsequently, in terms of Voluntary Compliance Encouragement Scheme
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was issued. Based upon the said discharge certificate they availed CENVAT credit of the tax was paid by them.
3. Proceedings were initiated against them by issuing show-cause notice seeking to deny CENVAT credit on the ground that such discharge certificate is not one of the specified documents for the purpose of availment of credit under rule 9 of Cenvat Credit Rules, 2004 and as such credit cannot be allowed to them. The show-cause notice culminated into an order passed by the Deputy Commissioner denying availment of such credit on such ground.
4. On appeal against the above order, Commissioner (Appeals) agreed with the assessee that the said discharge certificate issued under VCES Scheme is an admissible document for the purpose of ava
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eals) has gone beyond the show-cause notice. The proposition was to deny the credit on the sole ground that the discharge certificate is not proper document. Having held that the said certificate was a proper document, the appellate authority should have allowed the credit instead of rejecting the part on the ground of time bar. In any case and in any view of the matter I find that this specialised scheme was introduced by the Government of India for a limited period where the assessee is required to deposit duty and apply to the Revenue who would issue discharge certificate, on being satisfied about the quantum of taxes so paid by an assessee. If the assessee's tax credit is on the basis of challan itself, the concurrence of the Revenue is
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