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2019 (6) TMI 1275 - AT - Service TaxCENVAT credit - irregular availment of cenvat credit on various Bills of Entry - it was alleged that appellant had not produced Bills of Entry for defacement as required by law that prevailed during the relevant period - it was alleged that they have availed credit of ₹ 4,73,349/- 2/3 days prior to receipt of the inputs within the factory - also alleged that they have availed irregular credit of ₹ 27,446/- on goods which were not received in the factory at all. Disallowance of credit to the tune of ₹ 4,73,349/- and ₹ 27,446/- the allegation is that with respect to ₹ 4,73,349/- the credit entered in RG.23A Part II was made before receipt of the goods into the factory - HELD THAT:- Their mere allegation is that credit has been availed on the inputs before receipt of such goods into the factory. There is also no case that such inputs were not used in manufacture of finished products. Taking these facts into consideration, I am of the view that the availment of credit by making entries in RG.23A prior to receipt of the goods into the factory is only a procedural one and the substantive beneficial right of credit cannot be denied for such procedural lapse. Denial of credit of ₹ 27,446/- HELD THAT:- appellant has failed to establish that inputs were actually received into the factory. Credit in respect of ₹ 27,446/- is therefore disallowed and the demand is sustained along with interest. However, penalty in this regard is set aside as the penalty imposed is only composite penalty for both the issues. Further, the appellant has put forward explanation that these irregular availments occurred only because there was large number of documents to be entered and due to inadvertence the entries were omitted. The credit availed in respect of ₹ 4,73,349/- is eligible and the demand in respect of the same requires to be set aside - appeal allowed in part.
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