9911796707
TMI Blog2024 (12) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... less steel products, hot rolled carbon sheets, coils, plates etc. falling under Chapter 72 and 73 of CETA, 1985. They were availing CENVAT credit on inputs, capital goods and input services. On verification of the records during department audit, it was noticed that the appellant during the period between April 2010 and March 2011 irregularly availed CENVAT credit amounting to Rs.5,37,442/- by taking double credit on the same invoice and also taking credit over and above what is specified in the input invoice. On being pointed out, the appellant reversed the excess availed credit of Rs.5,37,442/- before issuance of a Show Cause Notice. However, Show Cause Notice dated 20.11.2013 was issued for recovery of the excess availed credit along wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest but waived penalty. Aggrieved by the OIO, the Revenue preferred an appeal before the Commissioner (Appeals) Salem vide Appeal No. 96/2015-C. Ex. The appeal filed by the Revenue was allowed and a penalty of Rs.2,68,721/- was imposed. Hence the appellant prefers this appeal. He stated that the application of the provisions of section 11AC would depend on the conditions specified therein. To invoke the extended period fraud, willful misstatement, suppression of fact etc has to be shown by the department which they failed to do. They were also not liable to pay interest since they had sufficient credit balance as confirmed by the OIO. They relied on the judgment of the Hon'ble Karnataka High Court in Commissioner of Central Excise & Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted only on delayed payment of duty i.e., where only duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person liable to pay duty, shall in addition to the duty is liable to pay interest. Section do not stipulate interest is payable from the date of book entry, showing entitlement of Cenvat credit. Interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized wrongly. (emphasis added) 5. Further although the OIO has invoked an extended period of time, it is settled law that to invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
