CENVAT Credit
3 articles
Actual Credit, Not Available Credit: Delhi High Court Upholds a ₹2.31 Crore Anti-Profiteering Order Made After the Reckitt Benckiser Remand
A Bhubaneswar developer argued that the anti-profiteering authorities had simply swapped 'purchase value' for 'turnover' after the Reckitt Benckiser remand, and that unclaimed pre-GST CENVAT credit should offset its post-GST credit. The Delhi High Court disagreed on both counts.
14 min readDepartmental 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