Union of India v. M/S Hindustan Zinc Ltd.
Case brief
What is this about?
The High Court allowed a D.B. Misc. Application recalling an erroneous order. The Court answered a question of law stating that withholding amounts for performance guarantee is covered by the relevant circular and Cenvat Credit Rules, permitting claim of credit despite lack of full payment.
What did the court decide?
Preliminary application allowed; erroneous order dated 13.09.2019 recalled. Central Excise Appeal No. 96/2018 dismissed as withdrawn. Question of law answered against Revenue.
What the court decided
HIGH COURT OF JUDICATURE FOR RAJASTHAN JODHPUR
D.B. Misc. Application No. 82/2019
Union Of India
----Petitioner
Versus
M/s Hindustan Zinc Ltd.
----Respondent
Connected With
D.B. Central/excise Appeal No. 126/2017
Union Of India
----Petitioner
Versus
M/s Hindustan Zinc Ltd.
----Respondent
Issues for consideration
3 issues framed by the court
Whether withholding of amounts towards performance guarantee is covered by Rule 4(7) of the Cenvat Credit Rules, 2004 for claiming CENVAT credit.
Whether the circular dated 30.04.2010 comprehends the withholding of amounts towards security including performance guarantee.
Whether the holding in CESTAT allowing credit on services paid via performance guarantee was correct in law.
Parties & counsel
- petitioner
Union Of India
- respondent
M/s Hindustan Zinc Ltd.
Coram
Indrajit Mahanty
Case details
As recorded by the court registry
- Court
- Rajasthan HC
- Decided on
- · December
- Registered
- Case no.
- EXCIA/126/2017
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