Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2018 (8) TMI 689

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the imposition of equal penalty of ₹ 2,85,27,320/- under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Act, cannot sustain and requires to be set aside. As this submission only relates to the method and manner of calculation of interest, the matter is remanded to the adjudicating authority only for the limited purpose of ascertaining the correctness and interest worked out after taking the contentions of the appellants into consideration - appeal allowed by way of remand. - Appeal No. E/00517/2012 - Final Order No. 42230 / 2018 - Dated:- 6-8-2018 - Hon ble Shri Madhu Mohan Damodhar, Member ( Technical ) And Hon ble Shri P Dinesha, Member ( Judicial ) Shri. V. Parthasarathy, Consultant for the Appel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 004 read with Section 11AC of the Act. Aggrieved, the appellants have filed the present appeal. 1.3 In the grounds of appeal, the appellants have submitted that no interest can be levied on the duty amount on account of revenue neutrality. Interest rate @18% has been charged for the entire period of demand while it should have been @13% prior to 01.04.2011. No interest can be charged on the duty involved from 08.04.2011 in the absence of Notification issued under new Section 11AA(2) specifying the rate of interest chargeable. Appellants have filed this appeal against the penalties imposed against the apparently wrongful collection of interest. 2. Today, when the matter came up for hearing, on behalf of the appellants Ld. Consultant Sh .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 358 (T)] C.C.E. Vs. Subray Catal Chemicals Pvt. Ltd. [2010(261)E.L.T. 1170 (T)] Sudhir Paper Ltd. Vs. C.C.E. [2010(259) E.L.T. 289] 3.1 On the other hand, Ld. AR Ms. Usha Devi opposed the appeal. She submits that the plea of inadvertence cannot be taken in this case since on reversal of SAD component has continued for more than five years. 3.2 She also submits that there cannot be any revenue neutrality in this case as the facts of the sister unit are not coming forth from the Show Cause Notice, and that this plea was not taken up by the investigation or before the adjudicating authority. She stated that this aspect has not been raised during the investigation. 4. Heard both sides and have gone through the facts. 5.1 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t even if the duty has to be paid by appellant as alleged in the SCN, their sister concern would be able to take credit. Ld. counsel also relied upon the judgment reported as Commissioner Vs Special Steel Ltd. - 2016 (334) ELT A123 (SC) where the Hon'ble Apex Court had upheld the decision of the Tribunal wherein department appeal was dismissed on the ground of revenue-neutrality since the duty paid on the goods cleared to sister unit was available as modvat credit to it and the allegation that such clearances were made at a lesser value was not relevant and only of academic nature. The para of the judgement in Precot Mills Ltd. Vs CCE Calicut - 2014 (313) ELT 789 (Tri.-Bang.) which is also relevant is reproduced as under : ......T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at least on four occasions, by the Internal Audit between 2007 and 2010, and on three occasions by CERA Audit between 2007 and 2009. 5.6 Taking into account all these factors, we find that the ingredients attracting imposition of penalty under Section 11AC of the Act are not present in this case. In the event, we hold that the imposition of equal penalty of ₹ 2,85,27,320/- under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Act, cannot sustain and requires to be set aside, which we hereby do. 6.1 The appellants have also made the following plea on interest in their grounds of appeal. As could be seen from the above position of law, it is evident that the rate of interest chargeable prior to 01-04-20 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates