2021 (8) TMI 697

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....nvat credit of Rs. 5,07,95,640/- (Rupees five crore seven lakhs ninety five thousand six hundred forty only) under Rule 14 of Cenvat Credit Rules and order that the amount of cenvat credit availed under head AED (GSI) should be reversed immediately. 2. I order for recovery of interest at the applicable rates under section 11 AB of Central Excise Act, on the amount of AED (GSI) wrongly availed in contravention of Rule 14 of Cenvat Credit Rules. 3. I impose a penalty Rs. 5,07,95,640/- (Rupees five crore seven lakhs ninety five thousand six hundred forty only) on M/s CEAT Ltd, MIDC, Satpur, Nashik under Sub Rule (2) of Rule 15 of Cenvat Credit Rules read with section 11AC of Central Excise Act." 2.1 The appellant is manufa....

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....r utilization towards payment of BED and SED on the final products. 2.5 The appellants paid the AED (GSI) credit utilized and then simultaneously availed credit of Rs. 5,07,95,640/- which the Revenue finds to be inadmissible and is, therefore, a show cause notice dated 21.05.2007 was issued . 2.6 This show cause notice was adjudicated by the Commissioner as per impugned order referred to in para 1, supra. 2.7 Aggrieved by the order appellants have preferred this appeal 3.1 We have heard Shri Rajesh Ostwald, Advocate for the appellants and Shri Mohd. Shamshad Alam, Additional Commissioner, Authorized Representative for the revenue. 3.2 Arguing for the appellant, learned Counsel submits that the issue involved in the matter is ....

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....re, the AED credit utilized was paid into the revenue through PLA and the original AED credit for payment of Basic Excise Duty was suo moto taken by the respondent and upheld by the Commissioner of Central Excise. The CESTAT in the impugned order holds as follows:- "The impugned credit had been legitimately earned by the assessee on procurement of inputs on payment of duty and used for payment of duty following the amendment of Cenvat Credit Rules under Budget 2003. Vide Circular No. 7/16/2003-CX., dated 6-3-2003, the C.B.E. & C. had also clarified that it was considered appropriate not to put any cap on the use of the AED (GSI) credit accruing prior to 1-3-2003. In terms of the provisions enacted in Finance Act, 2004, the debits w....