ITAT directs AO to Verify reconciliation chart of Cenvat Credit taken and utilized along with supporting Documentary Evidence

The Assessing Officer must examine the reconciliation chart of Cenvat credit collected and used, as well as supporting documentary proof, according to the Delhi Bench of the Income Tax Appellate Tribunal (ITAT).

FMI Automotive Components Pvt. Ltd. is a joint venture between M/s Futaba Industrial Co. Ltd. and Maruti Suzuki India Ltd., with 51 percent and 49 percent equity involvement, respectively. The company’s main business is manufacturing, selling, and trading in all types of Automotive Exhaust Systems, components, and related parts, which it produces at its Manesar, Haryana facility.

In light of the auditor’s comment in a tax audit report that it was not possible for him to disclose the date of payment of excise duty, the Assessing Officer denied the claim for payment of Rs.33,92,861/- in excise duty.

The assessee submitted a reconciliation of Cenvat credit taken and utilised and requested that the issue be returned to the Assessing Officer for decision in light of the Supreme Court’s decision in the case of Eichers Motors Ltd, which held that payment of excise duty by way of adjustment against Modvat/Cenvat credit is valid.

The department had no objection to the problem being restored to the Assessing Officer’s file for verification of the reconciliation of Cenvat credit taken and utilized by the assessee.

In light of the Supreme Court’s decision in the case of Eichers Motors Ltd., the Coram of Judicial Member Amit Shukla and Accountant Member O.P. Kant returned the issue to the Assessing Officer’s file for anew after verification of the reconciliation chart of Cenvat credit taken and utilised, as well as supporting documentary evidence.