2019 (4) TMI 897

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....re engaged in the manufacture of motor vehicle parts falling under Chapter 87 of Central Excise Tariff Act, 1985. During the course of audit of their records for the period 2011-12 to 2012-13, it came to the notice of the Department that the Appellant had availed inadmissible CENVAT Credit of the on the services viz. Rent-a-cab, Outdoor Catering, Mediclaim Insurance, and Vehicle Insurance, amounting to Rs. 8,16,755/-. On being pointed out by the Audit, the Appellant reversed the entire disputed amount with interest on 31.08.2014. Later, they have availed suo-moto credit of the CENVAT Credit reversed on outdoor catering service of Rs. 4,77,791/- in January 2015. Show Cause Notices were issued to the Appellant, one on 17.07.2015 proposing den....

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....e dt.17.07.2015, hence, cannot be mixed with the demand of credit on merit. It is her contention that in any case, penalty is not imposable in the circumstances when conflicting views were expressed on the admissibility of credit on outdoor catering service. 4. Per contra, the learned A.R. for the Revenue submits that initially the Appellant had availed inadmissible credit on outdoor catering service and reversed the same on being pointed out by the Department. First Show Cause Notice was issued for appropriation of amount paid by the Appellant. Since the Appellant has subsequently taken suo-moto credit, after initially reversing the credit, therefore, the second Show Cause Notice was issued for recovery of the suo-moto credit availed by....