2014 (7) TMI 572

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....n inputs and capital goods.  On 14.10.2011, they reversed cenvat credit on input of Rs. 72,58,926/- lying in cenvat credit account vide debit entry Sl.No.1667 dt. 14.10.2011 and informed the department by letter dt. 19.10.2011. Subsequently, by letter dt. 16.7.2012, they informed the department that the said credit was adjusted to revenue expenditure in the Income tax return filed on 26.11.2011. 2. The adjudicating authority claimed interest for the period 1.4.2011 to 13.10.2011 under rule 14 of Cenvat Credit Rules on the ground that they have claimed revenue expenditure under Income Tax Act  in March 2011.  He has also imposed penalty of Rs. 1 lakh on the appellant. 3. The learned advocate on behalf of the applicant submit....

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....further relied upon Board's circular No.783/16/04-CX dated 28.4.2004 at paras 2 & 3. 5. After hearing both sides and on perusal of records, I find that there is no dispute that appellant availed cenvat credit of Rs. 72,80,926/- in the financial year 2010-11.  They have also claimed revenue expenditure of the said amount in the income tax return in the financial year 2010-11.  It was reversed only in the next financial year as on 14.10.2011.  In this context, the Board's circular dt. 28.4.2004 is reproduced below :-      "2. It has been brought to the notice of the Board that in certain commodities, where there is accumulated CENVAT credit either due to inverted duty structure i.e. less duty on fi....