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Issues involved: Delay in filing appeal, Cenvat credit eligibility, Imposition of penalty
For the issue of delay in filing appeal, the appellant submitted that there was a delay of 78 days due to the negligence of the advocate-firm. The delay was condoned as the appellant should not be penalized for the advocate's lapse. The stay application was taken up for consideration. Regarding the Cenvat credit eligibility, the appellants had taken credit before the merger of their units, which was advised to be irregular. The demand for Cenvat credit of Rs. 15,85,951/- was confirmed along with a penalty. The appellant argued that it was a procedural omission and the credit was admissible, especially as they were a Large Taxpayer Unit (LTU) entitled to transfer credit between units. In the judgment, it was noted that the invoice was in the name of the STPI unit and services were received by that unit. Even though credit could be transferred, taking credit in a unit that did not receive the service was irregular. The Revenue's stance that interest should be paid for the period was deemed reasonable. The appellant agreed to pay the interest, and it was held that no penalty was necessary in this case. In conclusion, the appeal was disposed of with the direction for the appellant to pay interest for the irregular credit availed. The imposition of a penalty was deemed unnecessary given the circumstances. The operative portion of the order was pronounced in open court at the conclusion of the hearing.
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