2009 (9) TMI 551 - AT - Service Tax

Cenvat Credit- The issue in this case is regarding the non-eligibility of Cenvat credit on the tippers received by the appellant M/s. The Singareni Collieries Ltd. The issue in this case is as regards the non-eligibility of Cenvat credit on the duty paid has already been decided by this Bench against the assessee. Held that- the condition of pre-deposit of the amount of penalty imposed and the interest, is waived and recovery thereof stayed till the disposal of the appeal.

Summary

Issues:
1. Eligibility of Cenvat credit on tippers received by the appellant.
2. Calculation error by the Adjudicating Authority in determining the amount of Cenvat credit to be reversed.

Issue 1: Eligibility of Cenvat credit on tippers received by the appellant:
The case revolved around the appellant, M/s. The Singareni Collieries Ltd., claiming Cenvat credit on tippers received, which was deemed non-eligible based on a previous decision by the Bench against the assessee. The appellant was directed to reverse the Cenvat credit amount, with a submission by the Chartered Accountant highlighting a calculation error by the Adjudicating Authority. The Tribunal acknowledged the calculation discrepancy but deferred a detailed review to a later stage. Consequently, the appellant was instructed to reverse a reduced amount of Rs. 5,12,16,437 within a specified timeframe, with the condition of pre-deposit of penalty and interest being waived pending compliance.

Issue 2: Calculation error by the Adjudicating Authority:
The Adjudicating Authority's calculation error in determining the amount of Cenvat credit to be reversed was a crucial aspect of the case. The Tribunal recognized the need for a thorough examination of the correct calculation but opted to address this aspect at the time of final disposal. The appellant was granted a reprieve from pre-deposit conditions for the penalty and interest amounts, contingent on the timely reversal of the revised Cenvat credit sum. The Tribunal's decision aimed to balance the necessity for compliance with the appellant's right to a fair review of the calculation discrepancy before finalizing the obligations.

This judgment by the Appellate Tribunal CESTAT, Bangalore, underlines the significance of accurate calculation and eligibility criteria in determining Cenvat credit obligations. It showcases a nuanced approach by the Tribunal in addressing discrepancies while ensuring procedural fairness and compliance with regulatory requirements.