CENVAT CREDIT RULES, 2004

Rule 2(l)

Cenvat credit - Input service - Credit on FFC and MTOP - Eligibility of

Assessee was a manufacturer of steel products. They required gases such as oxygen, nitrogen and argon on a regular basis for use as inputs in their manufacturing process. For this purpose, assessee entered into an agreement with INOX for establishment of Cryogenic Air Separation unit on Build, Own and Operate (BOO) basis inside their factory premises and supply of requisite gase. Show Cause Notice was issued to assessee alleging wrong availment of credit on FFC and MTOP. After adjudication demand was confirmed along with interest and imposing penalty. Held: High Court in M/s. Inox Air Products (P) Ltd. (Previously, M/s. Inox Air Products Ltd.) v. Union of India, Commissioner of Central Excise, M/s. Steel Authority of India Limited 2020 (38) GSTL 158 (Mad.) : 2020 TaxPub(EX) 798 (Mad)) had considered the disallowance of credit on MTOP and FFC charges and held that assessee had to be allowed to avail the Cenvat credit of MTOP and FFC charges. Further, it had to be noted that assessee had paid Central Excise duty on these charges and therefore, the department cannot deny the credit availed of after collecting the excise duty.

Followed:M/s. INOX Air Products (P) Ltd. (previously, M/s. INOX Air Products Ltd.) v. Union of India, Commissioner of Central Excise, M/s. Steel Authority of India Limited 2020 (38) GSTL 158 (Mad.) : 2020 TaxPub(EX) 798 (Mad).

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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