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TMI Blog2021 (7) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... o.12/2015-CE (NT) dt. 30.04.2015 - The demand raised under the SCN for recovery of the wrongly availed cenvat credit is legal and proper. Penalty - HELD THAT:- Taking into consideration that the issue is of interpretational nature, the equal penalty imposed under Rule 15 (2) of the CENVAT Credit Rules, 2004 read with Section 11AC(c) of the Central Excise Act, 1944 is unwarranted and cannot sustain. Penalty is set aside. Impugned order is modified to the extent of setting aside penalty only without disturbing the confirmation of demand in respect of cenvat credit / duty along with interest - Appeal allowed in part. - EXCISE APPEAL No. 41545 of 2018 - FINAL ORDER No. 41676/2021 - Dated:- 14-7-2021 - Ms. Sulekha Beevi C.S., Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eletion of that provision and is normally not treated as different from repeal. The repeal/omission in the present case was not made retrospectively, but applied prospectively. Manufacturers and output service providers were entitled to take benefit of EC and SHE credit on the EC and SHE payable on manufactured goods and output services on or before the cut off date, i.e., 1st March, 2015 in case of manufactured goods and 1st June, 2015 in case of taxable services. They have not been allowed to take credit after the said two dates for the simple reason that EC and SHE ceased to be applicable and were no longer payable after the said dates. The provisos added to Rule 3, sub-rule (7) in clause (b) are really in the nature of concessions confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts and even finished products was available, but not in respect of the sold products. This was clearly taking away a vested right in the form of an amendment to the Rule. There was lapse of credit, which could not be utilized, though the tax/duty had not been withdrawn. The Supreme Court noticed that the credit attributable to inputs had already been used in manufacture of final products that had been cleared, and this alone was sought to be lapsed, notwithstanding the fact that the right had become absolute. On a holistic reading of the entire scheme, it was observed that when acts have been done by the parties concerned on the strength of the Rules, incidence following thereto must take place in accordance with the scheme or the Rules, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this was not the position even earlier. Both EC and SHE were withdrawn and abolished. They ceased to be payable. In these circumstances, it is not possible to accept the contention that a vested right or claim existed and legal issue is covered against the respondents by the decision in Eicher Motors Limited and Another (supra) and Samtel India Limited (supra). The said decisions are distinguishable and inapplicable. From the above, I hold that the demand raised under the show cause notice for recovery of the wrongly availed cenvat credit is legal and proper. However, taking into consideration that the issue is of interpretational nature, I am of the view that the equal penalty imposed under Rule 15 (2) of the CENVAT Credit Rules, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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