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2019 (4) TMI 1330 - CESTAT KOLKATACENVAT Credit - the credit taken on such inputs subject to process loss, was not reversed to the extent relatable to the purported quantity of inputs lost - Rule 4 (5)(a) of the Cenvat Credit Rules, 2004 - HELD THAT:- There will be certain conversion loss as no process can be undertaken on 100% conversion basis. If the resultant product has to meet the standard specification, the quantity loss invisibly could not be said to have been removed from the premises in terms of Rule 4(5)(a) of the Rules rendering its invocation erroneous on the facts of the present case. Allegation and demand to the contrary is articulated in the impugned order and the adjudication orders are therefore, baseless contrary to law and cannot sustain the demand sought to be imposed upon the appellant. In the absence of any contravention, there can be no basis for recovery of any duty by means of credit reversal or otherwise or interest thereon, in terms of Rule 14 of the Rules, read with Sections 11A and 11AA/AB of the Act. There can also be no penalty imposed upon the appellant in terms of Rule 15 (2) of the Rules read with Section 11AC of the Act. Appeal allowed - decided in favor of appellant.
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