Tribunal upholds decision setting aside penalty, interest for Cenvat credit denial

The appellate tribunal upheld the decision of the Ld. Commissioner (Appeals) to set aside the penalty and interest imposed on the respondents for the denial of Cenvat credit. The respondents rectified the error by paying the duty liability before the show cause notice without contesting it during the proceedings. The tribunal considered the timely payment and a precedent from the Hon'ble High Court of Bombay, leading to the rejection of the revenue's appeal regarding the interest and penalty.

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Issues involved: Denial of Cenvat credit u/s duty paying documents.

Summary:
The appeal was filed by the revenue against the order-in-appeal. The issue revolved around the denial of Cenvat credit to the respondents for not receiving the inputs as mentioned on the duty paying documents. The respondents acknowledged the error, paid the entire duty liability before the show cause notice, and did not dispute it during the proceedings. The Ld. Commissioner (Appeals) set aside the penalty and interest imposed on the respondents, considering their timely payment. The decision was influenced by a previous ruling of the Hon'ble High Court of Bombay in a similar case. The appellate tribunal found the impugned order appropriate in absolving the interest and penalty, thus rejecting the revenue's appeal.

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