Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 200 - AT - Central ExciseWrong availment of Cenvat Credit - assessee contested that non-reversal of CENVAT Credit was purely a clerical mistake on part of the operating persons - appellants only challenged the imposition of penalty under Rule 15 of CCR r.w.s. 11AC - Held that:- The appellants were aware that no duty was being paid on the clearances of the optional accessories as the same were optional and bought out items. In terms of provisions of Rule 3(5) of the Cenvat Credit Rules, they were required to reverse/pay the amount equal to the CENVAT Credit availed on such accessories while clearing the same along with the final product, which they have not done and such a mistake cannot be accepted as a clerical error and the appellants' submissions in this regard are rejected. Since they have availed such credit despite knowing that the value of such accessories is not included in the assessable value of the final products and nor these accessories/inputs are capital goods for such product, the intention to wrongly avail CENVAT Credit is quite obvious and consequently they are liable for penal action under Rule 15 of the Cenvat Credit Rules read with Section 11AC. As the appellants have cleared the input to their sister unit without raising any invoices for such clearance and have neither paid the duty nor reversed the CENVAT Credit, appellants have clearly violated the provisions of the Cenvat Credit Rules and accordingly, liable to penalty under Rule 15 of the Cenvat Credit Rules - assessee's reliance on the case of Mafatlal Industries Ltd. (2008 (10) TMI 517 - CESTAT, AHMEDABAD) on the ground of revenue neutrality is not applicable as wherever the intention to evade the payment of duty is found, in such situation the benefit on ground of revenue neutrality is not available to the appellants - against assessee.
|