Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1264 - AT - Central ExciseLevy of Interest on reversed CENVAT credits for the extended period - violation of Rule 4(5)(a) of CENVAT Credit Rules, 2004 - suppression of facts or not - extended period of limitation - HELD THAT:- Show-cause cum demand notice was issued on 06.10.2016 for recovery of credit of ₹ 29,41,851/- against reversal of credits of ₹ 31,39,532/- made on 23.02.2016. It is needless to mention here that learned Commissioner (Appeals) had treated the other units as the sister concerns of the appellant in which the capital goods were installed (para 7.1 and 7.3 of his order). However, he has confirmed the interest component as to him it is a civil liability under Section 11AA of the Central Excise Act and the same is unrelated to the intention of the appellant to evade payment of tax, though he found imposition of penalty as harsh punishment unless there is clear evidence of fraud, mis-statement or suppression of fact etc. with an intention to evade payment of Central Excise duty and he was satisfied that appellant had accepted the mistake and reversed the credit (duty). Such a finding on the learned Commissioner (Appeals) attained finality as no appeal is preferred by the respondent-revenue department against such order, which learned Authorised Representative submits to be not appealable as covered under litigation policy. It is a settled principle of law that if the assessee feels it a duty to pay or discharge tax liability of any past period, there is no prohibition to do so but such a liability can never be realised through the process of law unless the statute authorised the respondent-department to travel beyond the stipulated period as liability of the person to pay duty for the extended period would arise only when his/her intention to evade payment of duty is established - Be that as it may, in the instant case, the issue is reversal of credits which appellant had made immediately upon bringing the fact to its knowledge and much before issue of show-cause notice. Order imposing interest on reversed CENVAT credit is here by set aside - appeal allowed - decided in favor of appellant.
|