2017 (10) TMI 15

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... afide impression that they have to discharge the Central Excise duty on the engines removed based upon the transaction value and has done so by reversing the said amount under the Cenvat credit, cannot be held as intention to remove the inputs by paying excess amount to enable the purchaser to avail Cenvat credit - appeal allowed - decided in favor of appellant. - E/23756/2014-SM - Final Order N .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... led on the said inputs and thereby encashing the accumulated Cenvat credit. A show cause notice was issued for the demand of the said excess Cenvat credit wrongly utilized and collected from the customer under the privisions of Rule 14 of Cenvat credit Rules read with section 11D of Central Excise Act, 1944, with interest and also for imposing penalties. The adjudicating authority after considerin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y of any amount from the appellant unless such Cenvat credit is wrongly availed. After drawing my attention to the provision of Rule 3(4) of Cenvat credit as also Rule 14 of the Cenvat credit, it was submitted that credit for removal of inputs on capital goods as such duty shall be paid to the amount equal to the amount availed. In this case, they bonafidely paid the duty amount on transaction val .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ll be recovered from the manufacturer or the providers of the output services and the provisions of section 11A and 11AA of the Excise Act or section 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries. It can be seen that the said provisions of Rule 14 can be invoked only in case of wrongly taken Cenvat credit or utilized wrongly. 8. In the case in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d that the appellant herein could have been under bonafide impression that they have to discharge the Central Excise duty on the engines removed based upon the transaction value and has done so by reversing the said amount under the Cenvat credit, cannot be held as intention to remove the inputs by paying excess amount to enable the purchaser to avail Cenvat credit. As I have held on merits itself .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X