The Delhi Bench of Income Tax Appellate Tribunal (ITAT) directed the Assessing Officer to verify the reconciliation chart of Cenvat credit taken and utilized along with supporting documentary evidence.
The assessee company, FMI Automotive Components Pvt. Ltd. is a joint- venture between M/s Futaba Industrial Co. Ltd. and Maruti Suzuki India Ltd. with equity participation in the ratio of 51% and 49% respectively. The company is primarily engaged in the business of manufacturing, selling, and dealing in all kinds of Automotive Exhaust Systems, components, and related parts manufactured from its unit located in Manesar, Haryana.
The Assessing Officer disallowed the claim of payment of the excise duty of Rs.33,92,861/- in view of the comment of the auditor in a tax audit report that it was not possible for him to give the date of payment of excise duty.
The assessee submitted a reconciliation of Cenvat credit taken and utilized and contended that issue may be restored to the file of the Assessing Officer for deciding in the light of the decision of the Supreme Court in the case of Eichers Motors Ltd wherein it is held that payment of excise duty by way of adjustment against Modvat/Cenvat credit is valid.
The department did not object to restoring the issue for verification to the file of the Assessing Officer of the reconciliation of Cenvat credit taken and utilized by the assessee.
The Coram of Judicial Member, Amit Shukla, and Accountant Member, O.P. Kant restored the issue back to the file of the Assessing Officer for deciding afresh after verification of reconciliation chart of Cenvat credit taken and utilized along with supporting documentary evidence in the light of the decision of theSupreme Court in the case of Eichers Motors Ltd.
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