Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2011 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (7) TMI 975 - AT - Central ExciseReversal of cenvat credit - when the appellants themselves have informed the department that after 31/12/2004 they have ceased their character of 'manufacturer' and in that case they have retained the inputs on which they have availed CENVAT credit and an activity of softening was undertaken by them and cleared on payment of duty on input plus value addition. In such a situation, whether the appellant are required to reverse the CENVAT credit availed by them or not? Held that:- the appellant have taken inadmissible credit, therefore, they were issued show-cause notices to reverse the same. From the facts of this case it is very much clear that the appellant have taken inadmissible credit but they have paid the same at the time of clearance with value addition. In that scenario, as held by the Hon'ble apex court in the case of Narmada Chematur Pharmaceuticals Ltd. (2004 (12) TMI 93 - SUPREME COURT OF INDIA) where the assessee has wrongly availed modvat credit and was liable to reverse such amount and it was stated that the duty paid and modvat credit availed were identical and therefore consequences of payment of excise duty after availing the credit was revenue neutral. - payment of duty on value addition on the inputs received by the appellant amounts to reversal of the CENVAT credit as demanded by the department in the show-cause notices. - however penalty of ₹ 10,000/- imposed.
|