9911796707
TMI Blog2015 (1) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Adjudicating authority. 2. Shri D.R. Bhatt (Chartered Accountant) appearing on behalf of the appellant argued that out of total confirmed demand of Rs. 10,20,790/- amount of Rs. 4,36,718/- was available to them as CENVAT credit for which cenvatable documents were existing with the appellant during the relevant period on which credit was not taken by the time audit was undertaken. That this aspect was clearly brought out in their reply dated 07.7.2012 to the show cause notice. That a revised ST-3 return was also filed by the appellant and CENVAT credit was taken in the CENVAT account as if available before the visit of the audit. That actual CENVAT utilization by CERA has been taken as Rs. 29,86,623/-, as per the wrong inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by the lower authorities and accordingly defended the orders passed by them. 4. Heard both sides and perused the case records. It is observed that an amount of Rs. 4,36,780/-, out of the total amount demanded by the Revenue has been adjusted by the appellant by taking CENVAT credit on an earlier date, on the basis of some cenvatable documents for which no credit was taken by the appellant when the CENVAT register was verified by the visiting audit officers. Appellant cannot take cenvat credit in the CENVAT account on a date earlier than the visit of the audit officers when such credit was not earlier reflected in the CENVAT account. If some credit was admissible on the basis of cenvatable documents existing with the appellant, but credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant are concerned, it is observed that appellant was of the bonafide belief that CENVAT credit could be taken on an earlier date also where cenvatable documents were available with them. In the case of clandestine removal cases are admissible CENVAT credit is abated from the total demand even at the appellate stage. Further demand of Rs. 5,80,856/- is with respect to reconciliation of figures regarding taking of cenvatable credit. On the basis of above factual matrix, penalties under Section 76 and 78 of the Finance Act, 1994 are required to be set-aside under Section 80 of the Finance Act, 1994, even if extended period is invokable. Appeal filed by the appellant is required to be allowed to this extent. 7. In view of the above observation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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