2016 (7) TMI 1139

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....ntity of 1105-800 MTs  was cleared by appellant to another customer directly from the port. The appellant availed credit on the entire quantity showing that the entire quantity imported was received in their factory at Kurnool, during the period from 01.03.2010 to 27.04.2010. The appellant then issued 54 Central Excise invoices to the customers during the period March, 2010 to April, 2010 showing the clearance of coke to customers from their factory, whereas the coke was actually cleared to them directly from port. The client availed CENVAT Credit on the invoices issued by appellant. The department issued show cause notice alleging irregular availment of credit of Rs. 12,96,846/- on input which was not at all received in the factory of....

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....d availment of credit took place on February, 2010 and March, 2010. The appellant had immediately reversed the alleged credit on March, 2010 and April, 2010 and returns were filed reflecting the reversal in these months. The department initiated enquiry only in April, 2011 and the show cause notice was issued on 30.12.2011. He pleaded that as the credit was reversed before utilization it amounted to not taking credit and the only irregularity committed is that appellant showed in the documents that the entire quantity was received in the factory. The appellant had disclosed the credit and reversal in the ER-I returns and that there was no suppression of facts therefore prayed to waive the penalty. 4. Countering this, the learned AR Sh. S....