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2016 (4) TMI 768 - CESTAT CHENNAI

2016 (4) TMI 768 - CESTAT CHENNAI - TMI - Levy of interest - Availed ineligible Cenvat credit on capital goods and service tax credit - No documentary proof submitted - Held that:- in the absence of documentary proof, the matter needs to be remitted back to the Adjudicating Authority before whom the appellant must prove that there has only been availment and no utilization. If on perusal of the documents it is found that there has been only availment and no utilization, the levy of interest is u .....

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Dated:- 7-4-2016 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER For the Petitioner : Shri M. Kannan, Adv. For the Respondent : Shri R. Subramanian, AC (AR) ORDER The adjudicating authority has confirmed the demand of ₹ 3,10,792/- alongwith interest and penalty and appropriated the amount already paid towards demand of duty;. The appellant company has availed ineligible cenvat credit on capital goods and service tax credit. The present appeal is against the levy of interest and imposition of pena .....

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₹ 2,98,747/- in as much as they have availed credit for the entire excise duty paid on capital goods instead of availing 50% of the duty paid as per Rule 4 (2)(a) of Cenvat Credit Rules, 2004. He submits that credit of ₹ 12,045/- was availed wrongly on 30.04.2009 based on the invoice No. 53 dated 10.10.2006, even while there was no service tax payment under the said invoice. He vehemently mentions that they have reversed the credit of ₹ 12,045/- in respect of availement of cenv .....

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,-2014 (310) ELT 509 (Mad.) 2. CCE, Mumbai -I Vs. Bombay Dyeing & Mfg. Co. Ltd.-2007 (215) ELT 3 (S.C.) 3. CCE, Meerut-II Vs. Rana Sugar Ltd.-2010 (253) ELT 366 (All.) 3. The Ld. AR, Shri R. Subramanian, AC, submits that M/s. Hinduja Foundries Ltd. had wrongly availed the cenvat credit of ₹ 2,98,747/- as input credit for the capital goods by contravening the provisions of Rule 4 (2) (a) of CCR, 2004. Even though they wrongly availed the credit they reversed it but they did not pay any .....

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terest and imposition of penalty. During the course of hearing, the Learned Advocate submitted that they are not contesting the eligibility of credit. 5. Both sides have relied upon various judgments in their favour. The submission of the Learned Counsel that they had only availed the credit but not utilized the same is an assertion without any documentary proof. The judgment of the Madras High Court in the case of Strategic Engineering (P) Limited, reported in 2014 (310) ELT 509 (Mad) covers th .....

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d all doubts existed earlier in respect of Rule 14 of the said Rules, it is needless to say that the argument advanced by the learned counsel appearing for the appellant/Department is erroneous, whereas the argument advanced on the side of the respondent is really having merit and the substantial questions of law settled in the present Civil Miscellaneous Appeal are not having substance and altogether the present Civil Miscellaneous Appeal deserves to be dismissed. 6. However, in the absence of .....

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