2014 (7) TMI 780 - HC - Central Excise

Duty demand - Penalty u/s 11AC - CIT confirmed duty - Tribunal deleted duty and penalty - Whether Customs Excise & Service Tax Appellate Tribunal committed an error in fact and in law in reversing the order of CIT(Appeals) confirming the demand for wrongfully availed Cenvat credit of ₹ 1,07,07,142/- on the ground that the issue is revenue neutral - Held that - there is no material to even, prima facie, suggest that there was any fraud, collusion or willful misstatement or suppression of facts or controversy of the provisions of the Act or the Rules on the part of the assessee with intent to evade payment of duty - Decided against Revenue.

Summary

The Gujarat High Court admitted a Tax Appeal regarding the reversal of demand for wrongfully availed Cenvat credit. The Court did not consider the proposed question on penalty under Section 11AC as there was no evidence of fraud or intent to evade duty by the assessee.