COMMISSIONER, CENTRAL EXCISE, CHANDIGARH Vs. TYRE TOPS RAMPUR

JUDGEMENT

(1.) THIS appeal was admitted on the following substantial question of law: -

(2.) THE short question which arises for decision is whether a manufacturer who has obtained credit of the Central Value Added Tax paid by him in respect of the raw material and inputs lying in stock or in process or contained in the final product lying in stock is required to refund/repay the credit when the final product is exempted from excise. The main argument of Sh. Sandeep Sharma, learned Assistant Solicitor General of India is that the authorities below have not taken into consideration Rule 9(2) of the Cenvat Rules.

(3.) THE assessee filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals) held that the assessee was not required to reverse the credit involved on stocks lying in the factory when the appellant opted to avail the SSI benefit and opted out of the CENVAT Credit Scheme. Thereafter, the revenue filed an appeal before the Tribunal which rejected the same on the ground that a five Member Bench of the Tribunal in the case of Ashok Iron and Steel Fabricators supra had taken a view that the asssssee in such circumstances is not required to reverse the credit.