2009 (2) TMI 528

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....iharan, JCDR, for the Respondent. [Order]. - After hearing both sides on the stay petition for some time, I find that the appeal can be disposed without further hearing. Therefore the appeal proper is taken up for disposal after dispensing with the payment of interest and penalty demanded. 2. M/s. Thangavelu Spinning Mills Ltd. (TSML), the appellants herein availed input credit of Rs....

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....ule 14 of CCR read with Section 11AB of the Act and imposed equal amount under Rule 15 of CCR read with Section 11AC of the Act. The Commissioner (Appeals) affirmed the order of the original authority vide the impugned order. From the appeal and the submissions made by the learned consultant, the consistent case of the appellants seems to be that the supplier of the impugned inputs issued invoice ....

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....fide of the appellants; larger period was invoked without justification. The appellants always had huge accumulated balance of Cenvat credit and demand of interest was therefore not justified. As the demand was not sustainable under Section 11A of the Act, penalty could not have been validly imposed under Rule 15 of CCR read with Section 11AC of the Act. 3. On a careful consideration of th....

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.... take any action to recover the irregular credit in time. I find that but for the concerned invoices showing the name and address of the sister concern of the appellants, the appellants were qualified to obtain the credit; they had received the inputs, manufactured final goods and cleared them on payment of duty. In the facts of the case, the claim of the appellants that they had committed the irr....