AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 902
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....d in manufacture of excisable goods viz., Bags of all kinds, wallets, sleeping mats etc., falling under Tariff Item No. 42021290, 42023990 and 94042990 respectively of the Central Excise Tariff Act, 1985 (CETA). The appellants are having three units situated at Uttarahalli, Sunkadakatte and Solan. The unit located at Solan, HP, is exempted from payment of duty in terms of Notification No. 49/2003 and 50/2003. Further the appellants are also engaged in trading activities which is an exempted service covered in the negative list under Section 66D(e) of the Finance Act, 1994 with effect from 01.07.2012. During the audit of the records of the appellants' unit it was observed by the department that they had availed the entire Service Tax credit ....
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....ed by the Order-in-Original, appellant filed appeal before the Commissioner who rejected the same. 2. Heard both the parties and perused the material on record. 3. Learned consultant appearing for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the documents produced by the appellant in support of their submissions. He further submitted that both the authorities have not actually verified the details of reversal of cenvat credit with their ER-1 returns of the relevant tax period. He also submitted that the appellants have in fact reversed the irregular cenvat credit availed by them on the basis of the calculation made by the CA and the certif....
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....upees Twenty Seven Thousand Seven Hundred and Forty Eight only) which is demanded from the appellant. For the period April 2012 to March 2013, the learned consultant submitted that the appellant has discharged differential duty liability of Rs. 8,56,645/- (Rupees Eight Lakhs Fifty Six Thousand Six Hundred and Forty Five only) along with interest amounting to Rs. 8,25,759/- (Rupees Eight Lakhs Twenty Five Thousand Seven Hundred and Fifty Nine only) vide challan No. 13275 dt. 06.07.2017 and the copy of the said challan is also annexed with the memorandum of appeal. The learned consultant prayed that this amount may be appropriated towards the demand. Further with regard to April 2013 to March 2014, the learned consultant submitted that out ....
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....etails of which are given at Page 22 & 23 of appeal booklet. With regard to Rs. 58,061/- (Rupees Fifty Eight Thousand and Sixty One only) it is contested that the value of service tax availed as per the Department is not in accordance with the Chartered Accountant certificate, the Department has considered service tax availed value higher by Rs. 2,77,887/- (Rupees Two Lakhs Seventy Seven Thousand Eight Hundred and Eighty Seven only). The learned consultant further submitted that when the appellant has reversed the cenvat credit before the issue of show-cause notice and there is no liability due to be paid by the appellant, the question of making payment of interest in terms of Section 11A of the Central Excise Act 1944 does not arise. He fu....
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....to reverse Rs. 1,77,784/- (Rupees One Lakh Seventy Seven Thousand Seven Hundred and Eighty Four only) along with interest for delayed reversal. He further submitted that the appellant has suppressed the material facts in order to evade the payment of duty and therefore the penalty has been rightly imposed. 5. After considering the submissions of both the parties and perusal of the material on record, I find that the only issue involved in the present case is whether the appellants have reversed the cenvat credit irregularly availed as per Rule 6 (3A). In respect of the disputed periods, the bone of contention between the appellant and the Department is the quantum of the amount to be reversed under Rule 6(3A) of Cenvat Credit Rules. The ap....
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....specific amount for the disputed period except Rs. 1,77,784/- (Rupees One Lakh Seventy Seven Thousand Seven Hundred and Eighty Four only) which is liable to be reversed along with interest of Rs. 2,25,962/- (Rupees Two Lakhs Twenty Five Thousand Nine Hundred and Sixty Two only). Further I find that the substantial amount of cenvat credit was reversed before the issuance of show-cause notice, therefore the appellant is not liable to pay penalty. Further the Department has not brought any material on record to show that the appellant has suppressed the material fact with intent to evade the payment of duty. All the details were given in the books of accounts and also in ER-1 return from time to time which was audited by the Department. Furthe....