AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 27
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....ers of Telecommunication Services and are a public sector undertaking unit. The dispute emanates from the availment of 100% CENVAT Credit of capital goods by the assessee instead of restricting the availment to 50% for the first financial year. 2.2 Hence, a Show Cause Notice dated 11.04.2012 was issued inter alia proposing to demand the excess Credit of Rs. 1,48,42,336/- taken on such capital goods for the period from 2006-07 to 2010-11 under Rule 14 of the CENVAT Credit Rules (CCR), 2004 read with Section 73(1) of the Finance Act, 1994, along with demand of interest under Section 75 ibid and imposition of penalty under various provisions of law. In adjudication, vide the impugned Order dated 25.02.2013, the Commissioner confirmed the dema....
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...., as applicable to the remaining quantum of 50%. (ii) It was a mere book entry in their accounts and had no detrimental effect to the interests of the Revenue. The discrepancy was only caused by inadvertent accounting practice and there was no mala fide intention behind the error. Hence, suppression with intention to evade payment of service tax cannot be alleged on them. (iii) On the demand of interest, Ld. Advocate draws our attention to the judgement of the Hon'ble High Court of Madras in the case of C.C., C.Ex. & S.T., Coimbatore Vs. M/s. Sri Kumaran Alloys (P) Ltd. - 2019 (365) E.L.T. 305 (Mad.) to underline his contention that there cannot be any interest liability cast on the assessee. (iv) The appellant had entered the credit det....
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....ally correct. 7.1 The restriction on availment of CENVAT Credit up to 50% only in respect of capital goods has been laid down in Rule 4(2)(a) of the CENVAT Credit Rules, 2004. The relevant portion of the said Rules is reproduced below as ready reference : "The CENVAT Credit in respect of Capital Goods received in the premises of the provider of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent of the duty paid on such Capital Goods in the same financial year." 7.2 We are not able to find any confusion in the provisions mandated in the said Rules. This being so, the assessee were patently in the wrong when they have availed 100% of the Credit in the first financia....
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....ubstantial question of law was answered in favour of the Revenue, the Hon'ble High Court on considering the facts did not reverse the decision of the Tribunal. Paragraph 10 of the said judgement is reproduced as under : "10. Before we venture to consider the legal position, more particularly, the effect of the decision in Bombay Dyeing & Manufacturing Co. Ltd. (supra), we have to point out that on facts, we are not inclined to interfere with the order passed by the Tribunal for more than one reason. Firstly, the Revenue did not dispute the fact that the assessee is an S.S.I. and has not availed the Cenvat credit and the credit remains as an entry in the books. Therefore, on facts, it will be a very hard case for the Court to reverse the de....
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....al goods, had not utilized it. For this reason, the assessee contended that the availment of Credit was only a book entry and therefore, the demand of interest cannot sustain. The Tribunal held in favour of the assessee by waiving the interest. 10.3 The Hon'ble High Court in the case of Commissioner of C.Ex., Madurai Vs. M/s. Strategic Engineering (P) Ltd. - 2014 (310) E.L.T. 509 (Mad.) had held that the demand of interest or penalty cannot sustain when the credit wrongly taken has been reversed. In the case before us, the appellant has not reversed the wrongly availed Credit. Actually, there would be no meaning in recovering the wrongly availed 50% Credit as the appellant would be eligible for this Credit in the next financial year. It ma....