Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 567 - AT - Central ExciseInterest under Section 11AB and Penalty under Section 11AC of the Central Excise Act, 1944 on wrong availment of Cenvat Credit – There was wrong availment of Cenvat Credit on certain Capital Goods - Held that:- Supreme Court decision in the case of Ind-Swift Laboratories Ltd. [2011 (2) TMI 6 - Supreme Court] was considered and it was held, that the interest would be payable from the date Cenvat credit is taken or utilized wrongly - The said decision was considered by Hon’ble Karnataka High Court in the case of Commissioner of Central Excise & Service Tax Bangalore vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] as also in the subsequent decision in the case of CCE, Bangalore vs. Pearl Insulation Ltd. [2012 (11) TMI 912 - KARNATAKA HIGH COURT] and it was held that said Supreme Court decision relate to taking of credit or utilizing the same wrongly and cannot apply to availment of Cenvat credit in the account books - Hon'ble Karnataka High Court, in ST Bangalore V/s Bill Forge Pvt. Ltd. held that the assessee had not taken or utilized the Credit but only availed wrong credit in their account books and on pointing out the mistake, immediately reversed the entry. As no benefit of wrong entry in account books was taken, interest is not payable – Decided against the Revenue. Held that:-The show cause notice does not attribute any malafide intention to the appellant so as to invoke the penal provisions of Section 11AC – Also, there has to be element supported by evidence to invoke the provisions of Section 11 AC- Decided against the Revenue.
|