Page 264 - ELT_15th June 2020_VOL 372_Part 6th

910 EXCISE LAW TIMES [ Vol. 372
CENVAT/MODVAT/CENVAT CREDIT OF SERVICE TAX :
— Demand not sustainable as duty paid on exempted goods amounts to
reversal of credit - See under DEMAND ..................... 172
— Fraudulent availment - Evidence - In absence of any evidence of
procuring Bazar Scrap as a replacement of raw material, allegation of
only receipt of invoice and not raw material not established - No
investigations conducted either from suppliers of inputs/raw material
mentioned in invoices or from transporters to establish charge of non-
receipt of goods - Credit not deniable - Rule 14 of Cenvat Credit Rules,
2004 — Synergy Steels Ltd. v. Commissioner of Central Excise, Alwar (Tri. - Del.) ....... 129
— lying unutilized in books of account of tobacco manufacturer who closed
his business and surrendered Central Excise registration, liable to be
refunded in cash - See under REFUND/REFUND CLAIM ........... 81
— of CVD paid on ink imported in bulk container not admissible when such
ink refilled in printing reservoir and printing ink cartridges procured
from third parties and cleared after re-labelling on payment of duty as
such does not amount to manufacture - However, duty paid by assessee
would amount to reversal of credit and no further reversal of credit of
CVD required - Rule 3 of Cenvat Credit Rules, 2004 — Domino Printech India
Pvt. Ltd. v. Commr. of C. Ex., Delhi-III (Tri. - Chan.) .................... 96
— Reversal of - Common inputs used in manufacture of dutiable goods as
well as exempted goods - Non-maintenance of separate accounts of input
services - Proportionate Cenvat credit availed on common input services
used in provision of taxable service as well as trading of goods along
with appropriate interest, reversed by appellant in terms of Rule 6(3A) of
Cenvat Credit Rules, 2004 - Demand of huge amount under Rule 6(3A)(i)
ibid not sustainable as objective of Rule 6 ibid already achieved - Any
amount recovered over and above actual Cenvat credit availed for
exempted goods/services do not form part of Cenvat credit required to
be reversed, therefore not legal - Demand under Rule 6(3A)(i) ibid not
sustainable - Rules 6, 14 and 15(2) of Cenvat Credit Rules, 2004 — Etrans
Solutions Pvt. Ltd. v. Commr. of CGST & C. Ex., BBSR, Kolkata (Tri. - Kolkata) ......... 867
— Unutilised credit at end of accounting year - Income-tax - Deduction as
business expenditure - Deduction only of “any sum payable by the
assessee by way of tax, duty, cess or fee...” and only in respect of sum
actually paid by assessee - Modvat credit accumulated to assessee (car
manufacturer)’s account due to payment of Excise duty on raw materials
and inputs supplied to it - Liability to pay Excise duty on raw materials
and input on supplier and not assessee - Only incident of Excise duty
shifts from manufacturer of raw materials and inputs to purchaser and
not liability to same - Credit of Excise duty earned by assessee under
Modvat scheme not sum payable by it by way of tax, duty, cess -
Unutilised credit in Modvat scheme cannot be treated as sum actually
paid by assessee - Assessee cannot take benefit of proviso to Section 43B
of Income Tax Act, 1961 in respect of liability to pay Excise duty of
assessee to be incurred on removal of finished goods in subsequent year
i.e. year beginning from 1-4-1999 to allow deduction of unutilised
Modvat credit as on 31-3-1999 - As on 31-3-1999 assessee was not liable to
pay any more Excise duty - Such unutilised credit not qualified for
deduction under Section 43B ibid - Rules 57A to 57-I of Central Excise
Rules, 1944 — Maruti Suzuki India Ltd. v. Commissioner of Income Tax, Delhi (S.C.) ..... 785
— remaining unutilzed on closure of factory, cash refund not admissible -
See under REFUND/REFUND CLAIM ...................... 452

EXCISE LAW TIMES  15th June 2020  264