2019 (12) TMI 718 - HC - Central Excise

Permission to withdraw of appeal - CENVAT Credit - duty paying invoices - supplementary invoices - Rule 9 of the Cenvat Credit Rule, 2004 - HELD THAT - At the time of hearing, the learned counsel for the appellant placed on record affidavit dated 30.11.2019 of one Sh.Chand Singh, Authorised Signatory on behalf of the appellant-private company filed in Court today, whereby it is revealed that the appellant has availed the benefits under the Amnesty Scheme, 2019 and upon acceptance of his application, the appellant wishes to withdraw the present appeal. Appeal dismissed as withdrawn.

Summary

Issues:
1. Availment of Cenvat credit on own supplementary invoices in contravention of Rule 9 of Cenvat Credit Rule, 2004.
2. Dismissal of appeal by Commissioner (Appeals) and Hon'ble CESTAT upholding the orders passed by the Adjudicating Authority.

Analysis:
Issue 1: The appellant, engaged in manufacturing Stainless Steel Tubes and Pipes, wrongly availed Cenvat credit amounting to ?5,63,909 on their own supplementary invoices, deemed impermissible under Rule 9 of the Cenvat Credit Rule, 2004. A Show Cause Notice was issued in 2010, leading to confirmation of demand, interest, and penalty by the Adjudicating Authority in 2011. The Commissioner (Appeals) upheld this decision in 2013, which was further affirmed by Hon'ble CESTAT in 2018.

Issue 2: During the hearing, the appellant submitted an affidavit dated 30.11.2019, indicating the availing of benefits under the Amnesty Scheme, 2019. As a result, the appellant expressed the intention to withdraw the present appeal. The respondent's counsel did not object to this request, leading to the dismissal of the appeal as withdrawn.

In conclusion, the judgment reflects the appellant's improper availment of Cenvat credit on own supplementary invoices, leading to a series of legal proceedings culminating in the withdrawal of the appeal following the appellant's acceptance under the Amnesty Scheme, 2019.