2009 (12) TMI 737 - AT - Central Excise

Summary

Issues involved: Appeal against denial of credit u/s Rule 9A of Cenvat Credit Rules, 2002 for late filing of declaration.

Summary:
The appeal was heard by the Appellate Tribunal CESTAT CHENNAI where the appellant sought relief from the denial of credit under Rule 9A of Cenvat Credit Rules, 2002 due to a delay in filing the required declaration. The appellant's advocate argued that despite the delay, the appellants had the stock of inputs on the specified date and should not be denied the credit. On the other hand, the respondent supported the impugned order, emphasizing the non-compliance with the deadline for filing the declaration. The Tribunal noted that Rule 9A is a transitional provision with two conditions: filing a declaration of stock of inputs by a specified date and providing documents evidencing payment of duty. In this case, although the necessary declaration was filed late, the documents proving duty payment were available. Considering the circumstances, the Tribunal held that while the appellants could be penalized for the late filing, they should not be denied the credit. The impugned order denying credit was set aside, and a reduced penalty was imposed. The appeal was partly allowed, and the second appeal was allowed by setting aside the order passed due to the credit denial in the first appeal.

(Order dictated and pronounced in the open Court)