Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 298 - AT - Central ExciseCENVAT Credit - duty paying documents not provided - what was the actual position of availability of Cenvat credit as on 30.12.2008, that is to say as to whether ₹ 72,75,421/- which was available as on 31.12.2008 in their RG 23A Part-II as alleged in the show cause notice dated 20.1.2010 or ₹ 2,77,49,625/- as per ER-I return for the relevant period filed on 17.2.2009 which was filed with the department? Held that:- The requirement of duty paying documents for availment of Cenvat credit is substantive law - the appellant having not followed the procedure as prescribed for availment of Cenvat Credit Rules are not entitled for the Cenvat credit to the extent of ₹ 2,04,74,204/-. To that effect, it is found that Adjudicating authority has not violated the provisions of Cenvat credit in any way while denying the credit. In the present case, it is not disputed that the appellant has not provided any documents for huge amount of credit taken in their books of account and also utilised for the purpose of payment of duty. It was therefore, correct on part of the departmental officer to get them reversed and accordingly the same has been done by the appellant. Although, the appellant has contested that the reversal was done under the duress, threat and coercion. However, we find that the authorised signatory of the appellant has suo moto reversed the credit. Thereafter, the appellant has taken the credit of same with intimation to the department. This cannot be done without following the appropriate procedure under Cenvat Credit Rules, 2004. Having not produced the documents at the strength of which credit was taken by the appellant before the adjudicating authority, we do not find that any ground for allowing such credit to the appellant - as the appellant has not only wrongly taken the credit of Cenvat credit and but also utilised the same which was not available to them under the Cenvat Credit Rules, the department has rightly issued the show cause notice under the provisions of imposition of interest and confirmed the same after following the adjudication process. Appeal dismissed - decided against appellant.
|