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TMI Blog2014 (10) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... redit. Ld. Departmental Representative does not dispute the payment of interest. Since the appellant has already compensated the Central Government by paying the interest on the amount of excess Cenvat Credit availed by him; which was eligible to be availed by him in subsequent year, the question of recovery of the Cenvat Credit of the 50% availed by them in the same financial year does not arise. As regards the penalties imposed by the lower authorities, justification given by the appellant that the availment of total Cenvat Credit of the duty paid on the capital goods was inadvertent as the capital goods in question was parts of oxygen plant and different valves seems to be correct as there could be a confusion as to these capital good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial year i.e. 2009-10 hence they availed and utilized 50% excess credit i.e. ₹ 2,35,594/- during the period from 28.08.2009 to 31.03.2010 which was recoverable from them alongwith interest under provisions of Rule 14 of the Cenvat Credit Rules, 2004. However, as the said excess amount was available for availment and for utilization of Cenvat Credit from 01.04.2010, only interest and penalty was required to be recovered from them. Accordingly, a show cause notice dt. 22.06.2012 was issued to the appellant proposing (i) to disallow the Cenvat Credit amounting to ₹ 2,35,594/- for the period from 28.08.2009 to 31.03.2010 under Rule 4(2)(b) of Cenvat Credit Rules, 2004, (ii) to recover interest at appropriate rate on the said amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be penalized. 6. The first appellate authoritys order is not in consonance with the law, in as much, there is no dispute to the fact that appellant is eligible to avail Cenvat Credit of the central excise duty paid on the capital goods. Admittedly, availed credit is also not in dispute and the dispute is related only to the availment of entire credit in the first financial year. 7. In my considered view, there being no dispute as to eligibility to avail Cenvat Credit on capital goods, the contravention that has arose is only in respect of the availment of 50% in the credit in the same year instead of next year needs to be condoned. At the same time, the appellant is required to pay appropriate interest on the amount of such cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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