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2019 (6) TMI 320 - AT - Central ExciseCENVAT credit - inputs - capital goods - cenvat entries pertaining to capital goods were captured wrongly in the head of inputs registered in the system and appellant availed 100% credit in the first year itself - HELD THAT:- It is made clear that the appellant was entitled to avail 50% of the credit in respect of various capital goods, in the first financial year when they received the capital goods. The balance 50% would be availed by them in the next financial year. All the debit/ credit entries made in respect of the credit are required to be allowed so as to neutralize the situation - As such the confirmation of demand in question in the above two appeals leading to denial of credit of duty paid on the capital goods is not justified. It is made clear that the appellant would get the credit of duty paid on the capital goods in accordance with law i.e. 50% in the first financial year and 50% in the subsequent financial year. Apart from that any excess credit availed is required to be reversed back and any excess debit made by them is required to be neutralized. Such exercise can be done by the Original Adjudicating Authority. Demand of Interest - HELD THAT:- The credit, though availed, was not utilized by them and in terms of the Hon’ble Karnataka High Court in the case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT] the excess unutilized credit would not call for any confirmation against the appellant - demand set aside. Penalty - HELD THAT:- The entire availment of credit by reversing the same in the books of accounts was the subject matter of communications between the appellant and their Jurisdictional Central Excise Authority. The appellant have also attributed the said inadvertent mistake to the newly introduced SAP system. As such, in the absence of any mala fide on the part of the appellant. Imposition of penalty upon them is not justified - penalty set aside. Appeal disposed off.
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