Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2011 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (8) TMI 387 - AT - Central ExciseCENVAT Credit -availment of CENVAT Credit on fake invoices - This Bench in the case of Bhagwati Silk Mills vide Order No.A/55-185/WZB/AHD/2011, dt.24.01.11, has given direction to adjudicating authority to reconsider the issue of eligibility of CENVAT Credit. There is no reason to take a different view in this case - Hence, the impugned order is set aside and matter remanded to adjudicating authority to reconsider the issue afresh in the light of the decision rendered in the case of Bhagwati Silk Mills cited supra after following principles of natural justice - Assessee s appeal is allowed by way of remand.
Issues:
1. Early hearing of Stay Petition 2. Availment of CENVAT Credit on fake invoices 3. Disposal of appeal without pre-deposit Analysis: 1. The application for early hearing of Stay Petition was dismissed as the Stay Petition was listed for disposal. The issue of availment of CENVAT Credit on fake invoices was raised, citing previous Tribunal decisions. The Bench decided to take up the appeal for disposal after dispensing with the pre-deposit condition. 2. The main issue revolved around the allegation of the assessee availing CENVAT Credit on fake invoices. Referring to a previous case, the Bench directed the adjudicating authority to reconsider the eligibility of CENVAT Credit. The impugned order was set aside, and the matter was remanded for a fresh consideration following principles of natural justice, allowing the assessee's appeal by way of remand. 3. Additionally, the Revenue had appealed against the dropping of penalty on the Director of the company. Since the matter was being remanded for reconsideration, the appeal by the Revenue was also disposed of in the same manner, directing the adjudicating authority to review the imposition of penalty on the Director. The Revenue's appeal was allowed by way of remand. This judgment by the Appellate Tribunal CESTAT, Ahmedabad addressed the issues of early hearing of Stay Petition, availment of CENVAT Credit on fake invoices, and disposal of the appeal without pre-deposit. The decision emphasized the need for a fresh consideration of the CENVAT Credit eligibility issue and the penalty imposition on the Director, following principles of natural justice.
|