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2018 (9) TMI 1440 - HC - Central ExciseCENVAT Credit - Capital goods - availment of 50% credit in subsequent year - Whether in the facts and circumstances of case and in law, the Tribunal ought to have held that the Cenvat Credit on 50% value of CI Moulds is available in the subsequent Financial Year under Rule 4(2) (b) of the Cenvat Credit Rules 2002? - Whether in the facts and circumstances of the case and in law, the Tribunal was justified in holding that the amendment made to Rule 4(2)(b) of the Cenvat Credit Rules 2002 by the Cenvat Credit (18th Amendment Rules 2003) i.e. Notification No.70 of 2003 Central Excise (M.T.) dated 15th September, 2003, are not retrospective and/or clarificatory in nature? - substantial question of law. Held that:- The Notification No.70/2003 very clearly makes it effective only from 15th September, 2003. Thus, it is prospective. Further, the Circular No.755 dated 13th October, 2003 issued by the Central Board of Excise and Customs also does not state that it is clarificatory or for removal of doubts. Thus, its benefit cannot be extended to availment of credit prior to 15th September, 2003 - the above-mentioned two questions, do not give rise to any substantial question of law in view of self evident position - the questions not admitted for consideration. Whether in the facts and circumstances of the case and in law, the Tribunal was justified in upholding the penalty of ₹ 2,00,000/- under the Cenvat Credit Rules, 2005? - Held that:- Nothing has been shown in the present facts which would justify imposition of penalty. Nor any reason has been shown for the Tribunal not to follow the decision of its Coordinate Bench in Sri Krishnan Alloys [2015 (7) TMI 1148 - MADRAS HIGH COURT] in the present facts, wherein the Court held that on similar facts, the Assesse therein had acted on the bona fide belief that he is entitled to take balance credit in the subsequent Assessment Year - penalty not warranted - decided in favor of assessee. Appeal disposed off.
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