Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2011 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 551 - CESTAT AHMEDABADDuty demand - Wrong availment of CENVAT Credit - Held that:- Proceedings were initiated for availment of wrong credit in respect of inputs/capital goods. The learned A.R. could not show me the rule under which rules on which inputs/capital goods on which Cenvat credit has been wrongly taken can be confiscated. He could not do so. Since the offending goods namely goods on which Cenvat credit has been wrongly taken cannot be confiscated, the question of any person having knowledge or reason to believe that offending goods are liable to confiscation cannot arise in this case. This is a clear case where offending goods are not liable to confiscation at all. Therefore Rule 26(1) is definitely not applicable to the facts of this case - Rule 26(2) is applicable in respect of a person who issues invoice without delivery of goods or any other document or abets in making such documents. Basically this Rule has been enacted to facilitate imposition of penalty on persons who issue fake/bogus invoices without supplying the goods to facilitate availment of Cenvat credit or on persons who abet in such activities. Under these circumstances, penalty cannot be imposed on the two respondents under Rule 26 - Decided against Revenue.
|