TaxTMI 
TaxTMI 
2020 (6) TMI 121
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....undred and Three only) being the inadmissible cenvat credit availed by the appellant in respect of duty paid on furnace oil as demanded in various show-cause notices and also appropriated the entire amount of duty paid by the appellant. The adjudicating authority has also imposed penalty as well as demanded interest on the confirmed demand in terms of Rule 12/14 of the Cenvat Credit Rules, 2002/2004 read with Section 11AB of the Central Excise Act, 1944. 2. Briefly the facts of the present case are that the appellant is a manufacturer of Viscose Staple Fibre (BSF). The appellant was taking cenvat credit on Furnace Oil used as "fuel" in the manufacture of Wood Pulp, partly captively consumed in the same factory for manufacture of dutiable....
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....n the case of CCE Vs. Gujarat Narmada Fertilizer Company Ltd. - 2009 (240) E.L.T. 661 (SC) whereby the Hon'ble Apex Court reversed the judgment of the High Courts and the Tribunal and held that the legal effect of sub-rule (1) has to be applied to all inputs including fuel inputs, only exception being non-fuel-inputs, for which one has to maintain separate accounts or in its absence pay 8%/10% of the total price of the exempted final products. Therefore, sub-rule (1) shall apply in respect of goods used as "fuel" and on such application, the credit will not be permissible on such quantity of fuel which is used in the manufacture of exempted goods. Learned counsel further submitted that after the decision of the Apex Court in the case of Guj....
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....Department that they had taken credit only partially till 28/02/2003 on furnace oil used as fuel and that they intend to avail the balance credit for the period from 01/04/2000 to 28/02/2003 in the month of September 2003. Further the appellant vide letter dated 16/12/2003 informed the Department that since credit on fuel input was not required to be reversed, they had taken full cenvat credit of Rs. 54,35,476/- (Rupees Fifty Four Lakhs Thirty Five Thousand Four Hundred and Seventy Six only) for the period from 01/04/2000 to 28/02/2003. He further submitted that re-taking of credit wrongly reversed in the Cenvat Account is only an adjustment in the Cenvat Account and does not amount to wrong or irregular credit. In any case, the entire amou....
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....laid down in the Central Excise Law in terms of Section 11B of Central Excise Act, 1944. He further submitted that there is no provision in the Central Excise Law that enables the appellant to take back cenvat credit which was earlier reversed by them suo motto. 6. After considering the submissions of both the parties and perusal of the material on record, we find that in the present case the appellants were reversing the cenvat credit on furnace oil used as fuel in the manufacture of dutiable VSF and exempted Wood Pulp, a part of which was being stock transferred to Sister Unit at Nagda for the manufacture of dutiable VSF. Subsequently, the appellant came to know that the High Courts and the Tribunal in large number of judgments had tak....
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....ent with the prevalent judicial precedent in favour of the assessee. Here it is pertinent to reproduce the observation and the direction of the Hon'ble Supreme Court in the case of Gujarat Narmada Fertilizer Company Ltd. cited supra with regard to disputes arising on issues relating to cenvat credit and imposition of penalty. The relevant observations are reproduced herein below: "13. It may be noted that litigation on interpretation of Cenvat Credit Rules has arisen on account of various conflicting decisions given by the various Benches of CESTAT, the reason being that the Rules have not been properly drafted. In the circumstances, we are of the view that in this batch of cases no penalty is leviable, however, in order to decide ....