2018 (10) TMI 824

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.... The appellants are engaged in manufacture of Oil Seals, Moulded Rubber Products etc., and are availing the facility of Cenvat credit of duty paid on inputs, capital goods and service tax paid on input services based the invoices issued by the head office, which is registered as an Input Service Distributor. During the course of audit of accounts of appellants, it was noticed that their head offi....

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....e Tribunal. 2. On behalf of the appellants learned counsel Ms. Vardini Karthick submitted that the appellants are contesting only the interest and penalty imposed by the authorities below. She argued that the appellants had reversed the credit before utilization. The appellants had sufficient credit balance in their cenvatable account during the disputed period and, therefore, the interest and pe....

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....n the impugned order. He submitted that the appellants by such method of distribution had availed excess credit. Therefore, the demand raised is legal and proper. He also argued that the issue was unearthed only by Audit Officers and, therefore, the penalties imposed are legal and proper. 4. Heard both sides. 5. The appellants are contesting only demand of interest and penalties imposed. It is ....

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....Further, it is also to be remembered that whatever amount was distributed as excess to the appellant's Unit resulted in equal reduction of credit passed on to the other Units of the appellant's-Company. This wrong distribution was caused by incorrect computation of turnover of the respective Units, but the net effect of it is revenue-neutral. Finally, I find that the appellant had accepted the....