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2023 (4) TMI 1328 - AT - Central ExciseCENVAT Credit on Clean Energy Cess - Levy of penalty - HELD THAT - This Tribunal in the case of DECCAN CEMENTS LTD, M/S BHARATHI CEMENT CORPORATION PVT LTD, M/S ZUARI CEMENT LTD, M/S PENNA CEMENT INDUSTRIES LTD UNIT IV, I, M/S RAIN CEMENTS LTD VERSUS COMMISSIONER OF CENTRAL TAX, RANGAREDDY, TIRUPATI GST, COMMISSIONER OF CUSTOMS, CENTRAL EXCISE SERVICE TAX, NELLORE, TIRUPATI 2019 (7) TMI 764 - CESTAT HYDERABAD has gone into the issue as to whether the Appellants are eligible to take the CENVAT Credit on Clean Energy Cess. The Tribunal has held ' As far as the imposition of penalties are concerned, we find that this is an interpretational issue and it is possible for the assessees to have held a genuine belief that they are entitled for Cenvat credit of CEC and hence have taken Cenvat credit.' The Appeal filed by the Appellant in respect of Rs. 5,30,11,207/- taken by them as CENVAT Credit for the Clean Energy Cess is dismissed. The Appeal in respect of CENVAT Credit taken on Clean Energy Cess of Rs. 5,30,11,207/- and Rs. 2,92,50,364/- is rejected. The penalty of Rs. 10 lakhs and Rs. 1 lakh imposed stands set aside. Appeal allowed in part.
Issues involved: Appeal for CENVAT Credit on Clean Energy Cess, imposition of penalties.
Issue 1 - CENVAT Credit on Clean Energy Cess: The Appellant sought CENVAT Credit on Clean Energy Cess, referencing a previous case where penalties were set aside. The Advocate for the Appellant acknowledged that the issue had been decided against them previously. The Learned AR for the Respondent argued that the issue was covered in favor of the Revenue. The Tribunal referred to a previous case involving Deccan Cements Ltd. where it was held that denial of CENVAT Credit on Clean Energy Cess was upheld. The Tribunal also addressed penalties, stating that penalties imposed under Rule 15 of CCR, 2004 were not justified if the assessees genuinely believed they were entitled to the credit. Consequently, the penalties were set aside, and the Appeal was dismissed in favor of the Revenue for the CENVAT Credit on Clean Energy Cess. Issue 2 - Imposition of Penalties: The Advocate for the Appellant requested that penalties be set aside, citing a previous case where penalties were indeed set aside. The Tribunal, in line with the previous case law, dismissed the Appeal in respect of the CENVAT Credit taken on Clean Energy Cess. However, the penalties of Rs. 10 lakhs and Rs. 1 lakh imposed were set aside, thereby allowing the Appeal partly by dropping the penalties. In conclusion, the Tribunal allowed the Early Hearing Petition, took up the Appeal with the consent of both parties, and dismissed the Appeal in favor of the Revenue regarding the CENVAT Credit on Clean Energy Cess. The penalties imposed were set aside, resulting in a partial allowance of the Appeal by dropping the penalties.
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