2025 (7) TMI 924

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....ods for industrial use and availing CENVAT credit on input service under the provisions of CENVAT Credit Rules, 2004. On verification of the record, it is observed that from April 2011 to November 2012, Appellant had availed CENVAT credit on cancelled invoices. Since the Appellant has not followed the prescribed procedure under Section 11B of the Central Excise Act, 1994 on such cancelled invoices and availed such CENVAT credit, proceedings were initiated alleging that it is in violation of the CENVAT Credit Rules, 2004 and the appellant is liable for recovery of cenvat credit irregularly availed on cancelled invoices for an amount of Rs. 50,31,141/- along with interest and penalty. In response to the above objection, the Appellant submitte....

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....erial number may be allowed to be generated and printed by computer at the time of preparation of invoice ONLY IF the software is such that computer automatically generates the number and same number cannot be generated more than once. For this purpose, the Central Excise Officers may check the system/software from time to time in advance by the Superintendent or Inspector of the jurisdictional Range Office. The assessee will also maintain a record of such outward and inward movements, indicating date and time. Weighment should be done at the weighbridge nearest to the factory. The challan numbers shall be quoted on invoice. The Superintendent or inspector of the jurisdictional Range office will verify the challans and weighment slips rando....

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....nt case, simply held that revenue neutrality is to be applied having regard to facts of each case and held that " Where the scheme opted for by the assessee is found to have been misused (in contradistinction to mere deviation or failure to observe all the conditions) the existence of an alternate scheme would not be an acceptable defence". Therefore, the Tribunal has expressly held that said judgment is not in case of "mere deviation or failure to observe all the conditions". 6. As regards the finding of the Adjudication authority that the credit has been availed on the strength of cancelled invoices, Learned Consultant submits that such finding is prima facie unsustainable. The Appellant's case is not one of availing credit on the stren....

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....mits that substantial benefit should not be denied in the event of procedural lapse as settled by the following judgments:- (i) Mangalore Chemicals And Fertilizers Ltd. Vs. Dy. Commissioner [1991 (55) ELT 437 (SC)] (ii) Formica India Division Vs. Collector of Central Excise [1995 (77) E.L.T. 511 (S.C.)] 9. The Learned Consultant further submits that the demand confirmed by the Adjudication authority by invoking the extended period of limitation is also unsustainable. The disputed period was from April 2011 to November 2012 and show cause notice issued only on 14.10.2013. 10. The Learned AR reiterated the finding in the impugned order. 11. Heard both sides and perused the records. 12. We find that it is an admitted fact that there ....