Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s Hindustan Petroleum Corpn. Ltd. Versus Commissioner of Central Excise, Mumbai-II

2016 (6) TMI 544 - CESTAT MUMBAI

Clearance of goods to sister establishment - Non reversal of credit on such goods before clearance - Held that:- It cannot be said that it is entirely revenue neutral situation. In given point of time, they had sufficient credit balance in their PLA, which was far greater than amount taken as CENVAT Credit is irrelevant as the two accounts are totally independent accounts and if the amount in the CENVAT Credit is utilized, it will only result in increase the availability in the PLA accounts. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

entry in ER-1 were wrong or erroneous. The Order-in-Original asserts that the appellant had not submitted the invoices on which credit has been availed to the department. However, they have not pointed out that in what provisions of law was it necessary to submit the said invoices. In fact during the said period, there is no requirement of submitting any invoices. The appellants are Public Sector Undertaking and in most of the clearances listed in the show-cause notice, the credit of the duty pa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

id not reverse the credit on such goods before clearance. A show-cause notice was issued to them on 4.12.2009. The appellants reversed the credit during the period July, 10 to June, 11 along with interest. The matter was adjudicated by the original adjudicating authority and apart from confirming the reversal of credit and interest thereon, a penalty of equivalent amount was also imposed under Rule 25 of the Central Excise Rules, 02 read with Section 11AC of the Central Excise Act, 1944. 2. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

payment of duty. He further argued that at any given point of time, the credit balance in PLA was far higher in account than CENVAT Credit taken. He relied on the decision of the Hon'ble Supreme Court in the case of Bombay Dying & Mfg. Co. Ltd. - 2007 (215) ELT 3 (SC), wherein it was stated that CENVAT Credit taken but reversed before utilization amounts to not taking credit and hence interest is not applicable. Learned Counsel for the appellant did not contest the voluntary reversal of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also argued that the appellants are a large scale Public Sector Undertaking and have been in the business for very long period and are expected to know the law. For this purpose, he relied on the decision of Hon'ble High Court of Madras in case of Peter & Miller Packers - 2015-TIOL-652-HC-MAD-CX, wherein the Hon'ble High Court has observed as follows: - 16. In this case, we have already extracted both the adjudication orders, viz., on the first occasion and, thereafter, on remand. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore, IOC should have been well aware of the change in circumstances. In such circumstances, it should be expected that the assessee was aware of the position through IOC. Further, the assessee having an unit at Bombay, would have been aware of the changes in the law and, therefore, it cannot come before this Court and seek indulgence on the ground of ignorance of law. 5. I have gone through the rival contentions. I find that most of the clearances without reversal of credit are to their sis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version