TaxTMI 
TaxTMI 
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2025 (10) TMI 66
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....se Tariff Act, 1985.They pay central excise duty on the goods manufactured and cleared by them and also avail Cenvat credit of duty paid on inputs and input services used in or in relation to the manufacture of such goods. 2.2 During the scrutiny of the ER-1 Return for the month of February 2017 it was observed that appellant has made an adjustment of Cenvat credit amounting to Rs. 38,35,747/- & service-tax credit amounting to Rs. 47,97,986/- for the month of June & July, 2016. Therefore, It is apparent from the Return that the party has taken suo-moto input credit of Rs. 38,35,747& service tax credit of Rs.47,97,986/- (totaling to Rs.86,33,7331-) during the month of February, 2017. 2.3 Appellant vide their letter dated 04.03.2017 informed the jurisdictional Range Superintendent that during the month of June & July, 2016 they have paid duty on clearances of such goods on which no duty was payable and therefore, they intended for adjustment of Cenvat credit utilized in excess on clearances of goods on which no duty was payable. The Range officer vide letter dated 08.03.2017 asked the party not to make such adjustment of credit on their own and file prop....
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....not be demanded from them under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AA of the Act ibid; (iii) Penalty should not be imposed upon them under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act ibid. 2.8 The show cause notice was adjudicated as per the OrderIn-Original No. 27/JC/GBN/2017-18 dated:24.01.2018 holding as follows: (i) I disallow the Cenvat Credit of Rs. 86,33,733/- (Eighty six lakh thirty three thousand seven hundred and thirty three only) taken by the party suo-motu in the month of Feb' 2017 and order to recover the same under Rule 14 of the Cenvat Credit Rules. 2004 read with section 11A of the Central Excise Act, 1944 for the reasons as mentioned above. (ii) I confirm the demand of interest as per applicable rate in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AA of Central Excise Act, 1944. (iii) I impose a penalty of Rs. 8,63,373/- (10% of the credit amount wrongly taken by the party) under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act ibid. 2.9 Aggrieved appellant filed an appeal before the Commissioner (Appeal) which has b....
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....rated the findings recorded in the impugned order 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments. 4.2 Impugned order records the findings as follows: 4.1 I find that a letter dated 04.03.2017 was written by the appellant to the department (Range Superintendent) informing that during the month of June & July, 2016, they have paid excess duty on clearances of goods and therefore, they intended for adjustment of Cenvat credit utilized in excess on clearances of goods. The Range Superintendent vide letter dated 08.03.2017 asked the party not to make such adjustment of credit on their own and file proper refund claim if duty has been paid in excess during the relevant period i.e. in the month of June and July, 2016. But the party did not pay any heed to the advice of the Range officer and took the said suo-moto credit by way of adjustment of Cenvat credit, in ER-1 return of February-2017, amounting to Rs. 38,35,747/- & service tax credit amounting to Rs. 47,97,986/- for the month of June & July, 2016. The Range Superintendent vide his letter dated 30.03.2017 again requested the party to reverse ....
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....e also submitted Certificate dated 25.03.2018 issued by their Charted Accountants i.e. Bajaj Arora & Co., New Delhi in support of their claim that excess duty has been paid in the month June & July- 2016. In my opinion, instead of submitting. CA's certificate, the party should have submitted a certificate issued by Charted Engineer certifying that relevant entries of Cenvat account maintained in software installed in their system have not been-tampered with. 4.6 It creates suspicion that the appellant kept on filing the ER-1 return till January-2017 without realising that excess duty payment has been made in the month of June & July2016, though the Opening & Closing balance of ER-1 return account is tallied with Cenvat account every month and Cenvat details is filled in ER-1 return on the basis of Cenvat account register maintained by the party in their system. It is really surprising that he appellant took 6 to 7 months to realize that such a huge/ substantial amount has been paid in excess. 4.7 It has been laid down in the various settled case laws that any credit wrongly debited or debited twice or in excess cannot be taken as re-cre....
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.... account on 25-4- 2007, and intimated the Same to Department vide their letter dated 254- 2007 - Suo motu taking of credit of refund without sanction by proper officer not permissible under law - Hence, no infirmity in impugned order directing recovery of such amount - interest chargeable. 2009 (247) E.L.T. 519 (Tn. - Del.) TITAWI SUGAR COMPLEX Vs. CCE, MEERUT-1 Penalty -.Cenvat/Modvat Suo motu credit of Cervat cedit earlier reversed - Debiting in Cenvat account means payment of duty and the amount stands transferred to Government account - Appellants not eligible to take such Suo motu credit- However, it is not proper to demand once on the ground that the credit has been taken wrongly and again on the ground that credit has been utilized - Utilization of credit led to payment without duty - Therefore penalty on this count is warranted but is reduced to Rs. 13 lakhs - Rule 15 of Cenvat Credit Rules, 2004, [para 6.1] 2004(174) ELT 220 (Tri-Bang) Commissioner of C.Ex Belgaum Vs. Comfit Sanitary Napkins (I) Pvt. Ltd. We have considered the submissions and we note that the assessee cannot suo motu take credit....
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....Duty Payable 6585785 Total Duty Paid 6586490 CENVAT Account Excess Duty Paid 705 From the table above it is evident that during month of July 2016 appellant had self assessed the total duty liability of Rs 6585785/- and had paid the same by debiting from their CENVAT Credit account in respect of the inputs. 4.4 Similarly for the month of July 2016 it is evident that appellant had self assessed their duty liability as indicated in the table below: CETSH Description Quantity Cleared Assessable Value Rate of Duty Duty Payable Nature of Clearance 73089090 Fabricated Structure 6212 414921 12.5 51865 Home Clearance 85023990 Solar Power Generating System 69 4408409 0 Exempt 12/2012CE 0 85414019 Solar PV Module 2326 17947280 0 85030010 Parts of Generating Set 490 286600 12.5 35826 85030090 Parts of Generating Set (Canopy) 2 2079449 ....
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.... initiated against the appellant, alleging contravention of Rule 3,4 & 9 of the CENVAT Credit Rules, 2004 4.7 The question that needs to be addressed in the present case is whether the ER-1 of the appellant for the months of June and July 2016 could be considered as prescribed document for the purpose of availing this credit. Rule 9 (2) of the CENVAT Credit Rules, 2004 reads as follows: (2) No CENVAT credit under sub-rule (1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994, as the case may be, are contained in the said document: Provided that if the said document does not contain all the particulars but contains the details of duty or service tax payable, description of the goods or taxable service, assessable value, Central Excise or Service tax registration number of the person issuing the invoice, as the case may be, name and address of the factory or warehouse or premises of first or second stage dealers or provider of output service, and the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, is satisfied that the goods o....
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....I, wherein, NPCI has agreed to provide intermediary network switching and other support services, as may be required, for accounting and settlement of transactions made on the Automated Teller Machines (ATM) and integrating the same with the accounts of the customers, in the books of the member banks. The said agreement also records that in the event payments are made by one Member bank ATM operated by the appellant to the customers of another bank, then the banks are required to settle such payments made with the member bank who had issued the subject card. In nutshell, the above agreement provides for smooth operation of member banks regarding transaction through credit or debit cards or such other instruments, to the customers who perform transactions through ATMs for specified services. The agreement also provides for the NPCI to raise invoices on member bank and it is that payment made by the appellant for which the NPCI has only issued a e-statement that has triggered the first issue. From a perusal of the statement issued by NPCI, we note that it is a self-contained document incorporating all the mandatory requirements of proviso to Rule 4A and in any case, NPCI is not a pri....