CENVAT Credit
2 articles
Departmental Knowledge Defeats the Extended Period: Calcutta High Court Quashes a Central Excise Demand Founded on the Assessee's Own Cost Audit Report
Hindalco Industries faced a Central Excise demand of Rs. 6,29,920 built entirely on its own Cost Audit Report, three years after departmental officers had personally witnessed the very stock shortages now called suppression. The Calcutta High Court held the extended period of limitation unavailable: what the proviso to Section 11A requires is a deliberate act of concealment by the assessee, not the mere absence of departmental knowledge, and a demand cannot simultaneously rest on a statutory record and be founded on its suppression.
13 min readEighty Percent Sugar, No Marketability Defence: CESTAT Holds Captively Consumed Sugar Syrup Dutiable Even Though the Biscuits It Went Into Were Exempt
A biscuit manufacturer argued its captively consumed sugar syrup, made to a proprietary formula and never sold, was not 'goods' at all. Thirteen years after the show cause notice, CESTAT Ahmedabad disagreed, applying the Supreme Court's marketability test and a bright-line sugar-content threshold from tribunal precedent, while remanding to let the company claim Cenvat credit on the inputs consumed.
14 min read