{"id":7415,"date":"2025-12-30T17:21:14","date_gmt":"2025-12-30T11:51:14","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7415"},"modified":"2025-12-30T17:21:14","modified_gmt":"2025-12-30T11:51:14","slug":"buyers-cenvat-credit-not-deniable-if-supplier-paid-duty-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/buyers-cenvat-credit-not-deniable-if-supplier-paid-duty-cestat","title":{"rendered":"Buyer\u2019s Cenvat Credit Not Deniable if Supplier Paid Duty | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000409482\/cenvat-credit-cant-be-denied-to-buyer-merely-on-ground-that-supplier-paid-duty-which-it-wasnt-required-to-pay-cestat\">Huhtamaki PPL Ltd. vs. Commissioner of Central Excise &amp; Service Tax, Silvasa (2025) 35 Centax 107 (Tri.-Ahmd)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri Ramesh Nair<\/strong>, Member (J) &amp; <strong>RAJU<\/strong>, Member (T)<\/li>\n<li><strong>S\/Shri Prakash Shah<\/strong> &amp; <strong>Mohit Raval<\/strong>, for the Appellant.<\/li>\n<li><strong>Shri Ashok Thanvi<\/strong>, Superintendent (Authorised Representative), for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p class=\"Body-AllDocuments\">The appellant, being a recipient of excisable goods, availed Cenvat credit of excise duty paid on Gravure Printing Cylinders received from a manufacturer-supplier and used in the manufacture of final products. The adjudicating authority denied such credit on the ground that the said cylinders were not liable to excise duty and that the manufacturer-supplier had wrongly paid excise duty, contending that Cenvat credit of duty which was not payable could not be availed under Rule 3 of the Cenvat Credit Rules, 2004. The appellant submitted that the manufacturer-supplier had paid excise duty on the goods and such payment had neither been questioned nor challenged nor disputed by the supplier or by the jurisdictional officer having authority over the supplier. It was contended that, in the absence of any dispute regarding the legality of the duty payment at the supplier\u2019s end, the recipient could not be denied Cenvat credit merely on the ground that the duty was not required to be paid. The matter was accordingly placed before the CESTAT.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The CESTAT held that there was no evidence on record to show that the payment of excise duty by the manufacturer-supplier had been questioned, challenged, or disputed by the jurisdictional officer having authority over the supplier. It was held that, in such circumstances, the payment of duty was required to be treated as legal and correct, and the recipient of the goods could not be denied Cenvat credit of the duty so paid. The Tribunal held that even where excise duty was not payable on a product for any reason, once the manufacturer-supplier had paid such duty and the payment had attained finality, no objection could be raised against the availment of credit by the recipient under Rule 3 of the Cenvat Credit Rules, 2004. The Tribunal accordingly held that Cenvat credit could not be denied merely on the ground that the supplier was not required to pay excise duty and allowed the appeal.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(202)%20E.L.T.%20753%20(Mad.)&amp;itemType=AP\">Commissioner v. CEGAT<\/a> \u2014 2006 (202) E.L.T. 753 (Mad.) \u2014 Relied on [Para 2, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2009%20(235)%20E.L.T.%20785%20(Guj.)&amp;itemType=AP\">Commissioner v. Creative Enterprises<\/a> \u2014 2009 (235) E.L.T. 785 (Guj.) \u2014 Relied on [Paras 2, 4, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2009%20(243)%20E.L.T.%20A120%20(S.C.)&amp;itemType=AP\">Commissioner v. Creative Enterprises<\/a> \u2014 2009 (243) E.L.T. A120 (S.C.) \u2014 Referred [Paras 2, 5]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2007%20(212)%20E.L.T.%20284%20(Tribunal)&amp;itemType=AP\">Commissioner v. Hylite Cables<\/a> \u2014 2007 (212) E.L.T. 284 (Tribunal) \u2014 Referred [Para 2]<\/li>\n<li>Commissioner v. Kris Flexipacks Pvt. Ltd. \u2014 2023 (7) TMI 943 \u2014 Relied on [Paras 2, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2008%20(229)%20E.L.T.%20485%20(S.C.)&amp;itemType=AP\">Commissioner v. MDS Switchgear Ltd.<\/a> \u2014 2008 (229) E.L.T. 485 (S.C.) \u2014 Referred [Para 2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2014%20(305)%20E.L.T.%209%20(Guj.)&amp;itemType=AP\">Commissioner v. Nahar Granities Ltd.<\/a> \u2014 2014 (305) E.L.T. 9 (Guj.) \u2014 Relied on [Paras 2, 6, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2012%20(275)%20E.L.T.%2049%20(Bom.)&amp;itemType=AP\">Commissioner v. Nestle India Ltd.<\/a> \u2014 2012 (275) E.L.T. 49 (Bom.) \u2014 Relied on [Paras 2, 7, 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(203)%20E.L.T.%20213&amp;itemType=AP\">Commissioner v. Ranbaxy Labs Ltd.<\/a> \u2014 2006 (203) E.L.T. 213 (P.&amp; H.) \u2014 Relied on [Paras 2, 9, 10]<\/li>\n<li>Hanon Automotive Systems India v. Commissioner \u2014 2022 (7) TMI 10-CESTAT-AHM \u2014 Referred [Para 2]<\/li>\n<li>Sunrise Containers Ltd. v. Commissioner \u2014 2022 (11) TMI 792-CESTAT-AHM \u2014 Referred [Para 2]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Huhtamaki PPL Ltd. vs. Commissioner of Central Excise &amp; Service&hellip;<\/p>\n","protected":false},"author":19,"featured_media":7420,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-7415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Buyer\u2019s Cenvat Credit Not Deniable if Supplier Paid Duty | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT holds that Cenvat credit cannot be denied to the buyer merely because the supplier paid 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