2017 (9) TMI 688 - AT - Central Excise

Suo-moto re-credit of CENVAT account which was earlier reversed - Held that - the issue is of suo moto availment of CENVAT credit on which a separate SCN dt. 2.8.2001 was issued on the ground that the appellant availed the CENVAT credit without physically received the input - Since the main issue i.e. availment of CENVAT credit without physical receipt of input has attained finality against the appellant in the proceedings of SCN dt. 2.8.2001 and no further appeal against the Tribunal s order was filed by the appellant the issue stand finally decided against them - appeal dismissed - decided against appellant.

Summary

Issues:
1. Appeal against order of Commissioner (Appeals) rejecting appeal and upholding Order-in-Original.
2. Availment of modvat credit without receipt of inputs.
3. Re-crediting cenvat credit amount suo moto.
4. Previous Tribunal orders reducing penalty and rejecting appeal on time bar.
5. Challenge before High Court and directions to decide appeal on merit.

Analysis:

1. The appeal was filed against the order of the Commissioner (Appeals) who rejected the appeal and upheld the Order-in-Original confirming a demand of modvat credit, imposing a penalty, and ordering recovery of interest. The appellant had availed cenvat credit on 4 invoices without receiving the inputs. The main issue was the appellant's action of re-crediting the cenvat credit amount suo moto, which was earlier reversed during investigation by the Preventive Officer.

2. The investigation led to a show cause notice being issued, which was adjudicated, confirming the demand of cenvat credit. The Commissioner (Appeals) upheld this decision. The appellant challenged this before the Tribunal, which reduced the penalty but upheld the disallowance of credit. The present appeal was rejected by the Tribunal on grounds of time bar and merit.

3. The appellant's appeal was further challenged before the High Court, which set aside the Tribunal's order and directed to decide the appeal on merit. The issue of availment of cenvat credit without physical receipt of input had already been decided against the appellant in previous proceedings, and no further appeal was filed by the appellant against the Tribunal's order. Therefore, the present appeal was deemed unsustainable, and the impugned order was upheld, resulting in the dismissal of the appeal.