2022 (12) TMI 971

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....o June 2017 and that the same was recoverable under Rule 14 of the CENVAT Credit Rules (CCR), 2004. 2. Brief facts which are relevant for the purposes of this appeal, as could be gathered from the Show Cause Notice, are that there was an audit of accounts for the period from March 2016 to June 2017 wherein it was noticed that the appellant had availed ineligible credit of Excise Duty paid by the supplier, which is tabulated under paragraph 2.1 of the Show Cause Notice. In the Show Cause Notice, it was thus proposed, after invoking the extended period, that the appellant had deliberately mis-declared material facts with intent to evade payment of Central Excise Duty, to recover / demand the wrongly availed CENVAT Credit of Rs.19,86,201/- ....

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....he deletion of interest, the Revenue has not filed appeal and it appears that the same is accepted by them. 5. Shri M. Kannan, Learned Advocate, appeared and argued for the appellant and Shri M. Ambe, Learned Deputy Commissioner, appeared and argued for the Revenue. 6. I have considered the rival contentions and have carefully gone through the orders of both the lower authorities as well as the reply to the Show Cause Notice which is placed on record. 7. The appellant has placed, at page number 39 of the Appeal Memorandum, its reply dated 16.03.2021 filed in response to the Show Cause Notice and it is relevant to reproduce paragraphs 5 and 6 here:- 8. From the above response, it is very clear that the appellant had clearly menti....

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.... Revenue has not been able to justify the same and therefore, the demand, as confirmed in the impugned order, cannot be sustained. When the demand itself cannot be sustained, the penalty imposed also cannot be sustained for the same reason and consequently, the impugned order to this extent cannot be sustained. Accordingly, the impugned order to this extent is set aside. 11. The appeal is allowed with consequential benefits, if any, as per law. (Order pronounced in the open court on 21.12.2022) ============= Document 1 5. In this connection, it submitted that the Mill has stopped its crushing operation from the year 2017-18 onwards there is no revenue to the Mills. The Mill is expecting Government support in the form of Gra....