2017 (10) TMI 82

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....pellant : Priyank P Lodha, Advocate ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Department is in appeal against the judgment of CESTAT dated 20.01.2017 raising following questions for our consideration: "Whether in the facts and circumstances of the case and law, the Hon'ble Tribunal has committed substantial error of law in setting aside the penalty as being unw....

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....case of Mundra Ports & Special Economic Zone Ltd. v. C.C.E & Customs reported in 2015 (39) S.T.R. 726 (Guj.). The department on the other hand relied on the judgment of the Bombay High Court in case of 2014 (35) STR 865. The Tribunal by the impugned judgment confirmed the stand of the department that the cenvat credit was not available to the assessee. The Tribunal was of the opinion that the issu....

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....isclosures. The issue ultimately got resolved by the judgment of Bombay High Court in case of Bharti Airtel. Even then the assessee contends that the Gujarat High Court in case of Mundra Ports & Special Economic Zone Ltd. (supra) has taken a different view. We may record that the view taken by the Tribunal that the assessee is not entitled to cenvat credits on such inputs is challenged by some of ....

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....s of the rules in respect of any input or capital goods then all such goods shall be liable to confiscation and the person would be liable to a penalty not exceeding the duty on the excisable goods in respect of which the contravention has been committed or Rs. 10,000/whichever is greater. 5. Under this rule therefore penalty could be imposed if a person takes a cenvat credit wrongly or without....