2014 (5) TMI 1117 - AT - Central Excise

Cenvat demand - credit availed in respect of fibre glass, received in the appellant factory - Held that - no justifiable reason found for denial of credit or for imposition of penalty inasmuch as fibre glass was cleared on payment of excess duty by reversing more credit. As such, the entire credit availed by the appellant stand reversed by them. The entire situation is revenue neutral and consequent confirmation of duty in respect of the credit so availed is not justified. - Decided in favour of appellant

Summary

The Appellate Tribunal CESTAT in New Delhi confirmed duty of Rs. 2,78,828 against the appellant for denying credit on fibre glass. The appellant cleared the goods by paying duty of Rs. 3,27,116 after availing credit on the fibre glass. The tribunal found no justifiable reason for denial of credit, as the appellant reversed the credit by paying excess duty. The tribunal set aside the order and allowed the appeal with consequential relief to the appellant.