2019 (11) TMI 49

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....he Central Excise Act, 1944 (CEA, for short) read with Rule 15(2) of CENVAT Credit Rules, 2004 (CCR, for short). 2.1. Briefly the facts of the present case are that the respondents are engaged in the manufacture of transistor, inverters falling under Chapter 85 of the CETA, 1985. During the course of audit of the books of accounts of the respondent in November 2013, it was observed that the respondent had received certain common input services such as telephone / internet services, manpower supply services, security services, rent paid on immovable property etc. used for trading and manufacturing activities of the company. Since the trading activities are exempted services as per Rule 2(e) of CENVAT Credit Rules, 2004, the company is req....

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..... 4,68,629/- for the periods March to September 2013 and October 2013 to February 2014 respectively was reversed immediately when the audit observation was raised and the same was also shown in the return filed by the company for February 2014; (iii) on account of inadvertent error, CENVAT credit to the tune of Rs. 30,86,821/- has been reversed in excess; and (iv) since CENVAT credit has been reversed before the issuance of the show-cause notice, interest and penalty are not payable by the company. After following the due process, the original authority vide order dt. 08/02/2017 confirmed the demand and also appropriated the amount already reversed and demanded interest and also imposed 50% penalty. Aggrieved by the said order, respondent f....