2018 (1) TMI 1743 - AT - Central Excise

Invocation of Rule 25 of Central Excise Rules, 2002 - Recovery of CENVAT Credit under the provisions of Rules 6 and 11 of Cenvat Credit Rules, 2004 - HELD THAT - The said provision of Rule 11 of Central Credit Rules, 2004 required the manufacturer to pay an amount equivalent to Cenvat Credit involved in the inputs lying in stock on the date on which the final product becomes absolutely exempted under a Notification issued under Section 5A of Central Excise Act, 1944. The proceedings can be limited only to the recovery of amount equivalent. The Act or Rules made thereunder have not provided for imposition of any penalty. Therefore, there are no infirmity in the impugned Order-in-Appeal. Appeal filed by Revenue rejected.

Summary

The appeal filed by Revenue against an Order-in-Appeal was rejected by the Appellate Tribunal CESTAT ALLAHABAD. The case involved Cenvat Credit rules and exemption of duty on Menthol products. The Tribunal found no grounds for penalty imposition under the Central Excise Act.