2008 (7) TMI 725 - AT - Central Excise

Summary

Issues involved: Appeal for out-of-turn hearing, demand under CENVAT Credit Rules, interest, penalty, discount received from supplier post-financial year.

Out-of-turn Hearing Appeal:
The appellants sought out-of-turn hearing of their appeals, which was granted after hearing both sides on the applications.

Demand under CENVAT Credit Rules:
The impugned orders demanded amounts from the appellants under Rule 12 of the CENVAT Credit Rules, 2002/Rule 14 of the CENVAT Credit Rules, 2004, along with interest and penalty under Rule 13(2) of CENVAT Credit Rules, 2004/Rule 15(2) of CENVAT Credit Rules, 2004. The demand related to the amount received by the appellants from the supplier of inputs as discount after the financial year end. The appellants had taken credit of duty paid on inputs received as per invoices, and the availment of input credit was deemed regular. The Tribunal set aside the impugned orders based on legal precedents and allowed the appeals filed by the parties.

Interest and Penalty Imposition:
The Commissioner demanded interest and imposed an equal amount of penalty on the appellants under the relevant sections of the CENVAT Credit Rules. However, the Tribunal set aside these demands along with the main demand, based on legal arguments and precedents supporting the appellants' position.

Discount Received Post-financial Year:
The demand made by the Commissioner was in relation to the discount received by the appellants from the supplier of inputs after the end of the financial year. The appellants argued that the demand to recover credit availed by them in accordance with invoices covering the inputs could not be made unless the assessment under the relevant invoices was revised at the supplier's end. The Tribunal, following legal principles and previous decisions, ruled in favor of the appellants, setting aside the impugned orders and allowing the appeals.