TaxTMI 
TaxTMI 
2025 (10) TMI 727
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....VAT Credit Rules, 2004. A Show Cause Notice, dated 21.04.2015, was issued to the Appellants seeking to recover, CENVAT Credit of Rs. 68,06,633, along with interest and proposing to impose penalty under Section 11AC, Rule 15, and Rule 25 of Central Excise, Act 1944, CENVAT Credit Rules, 2004 and Central Excise Rules, 2002 respectively. Vide impugned order, Learned Principal Commissioner disallowed CENVAT Credit of Rs. 45,70,560, for the period from 2010-11 to 2014-15 along with interest; he also imposed penalty of Rs. 45,70,560 under Rule 15 of CENVAT Credit Rules, 2004 (CCR rules) and penalty of Rs. 45,70,560 under Rule 25 of Central Excise Rules, 2002. Hence, this appeal. 3. Shri Amar Pratap Singh, assisted by Shri Niren Sharma, Learned Counsel for the appellants, submits that Rule 3(5B) of CCR, 2004 is not applicable as the raw materials and sub-assemblies were scrapped during the manufacturing process; it was nothing but loss on account of scrapping of work-in-progress; scrapping of inventory of finished goods, pertained to goods returned after sale, under Rule 16 of CCR,2004, and no CENVAT credit was availed on the same. He submits that while the impugned proceedings were fo....
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....A certificate and submissions made by the Appellant on record clearly indicate that assembling and sub-assembling are stages of manufacture for the Appellant. Therefore, the Ld. Principal Commissioner has simply failed to understand the scope of application of the Circular and blindly quoted and applied the same. 6. Learned Counsel submits that submits that the appellant produced a Chartered Accountant's certificate, which clearly certified that no input as such were written off in the books of the Appellant; learned Principal Commissioner, did not consider certificate. He relies on Shyam Coach Engineers 2024 (388) ELT 194 (Tri. - Del.), Mix National Engineering Industries Limited (Final Order No. 58084/2024 dated 22.08.2024 New Delhi, Cadila Pharmaceuticals Ltd (Final No. 60298/2024 dated 04.06.2024 Chandigarh) and Systronics (India) Ltd 2019 (370) ELT 945 (Tri. - Bang.). 7. Learned Counsel submits also that the Show Cause Notice was issued on 21.04.2015, for the demand for the period from 2011-12 to 2013-14, is barred by limitation; department was regularly conducting audit of the Appellant; the Appellant was regularly filed the statutory returns; the department had full kn....
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....uch before the amendment. She submits that though the appellant contended that the raw material, work in progress and semi-finished goods were scrapped and sold on payment of duty, no documentary evidence was shown; the certificate issued by Chartered Accountant only talks of field visit but it doesn't show if any accounts were verified. 10. Learned Authorised Representative argues on the issue of the extended period that there is nothing on record to show that this activity of the appellants was in the knowledge of the department; the appellants never contacted the department for clarification on this issue; it came to the knowledge of the department only during the Audit, on scrutiny of private records of the appellants; but for the audit the short levy would have remained unnoticed; hence extended period of limitation is invocable. She relies on • RDC Concrete (I) Ltd 2016 (337) ELT A 205 (SC) • Anjay Bahadur-2009 (240) ELT 282 (Tri. -Mumbai) • Delite Kom Ltd. -2016 (336) ELT 675 (Tri. -Del.) • Jabalpur Oxygen Company 1991 (52) ELT 455 11. Heard both sides and perused the records of the case. The instant case revolves ....
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....vt. Ltd. cited (supra) wherein the Tribunal has held as under:- "7. Having considered the rival contentions, we find that the issue is one of interpretation. We further find that for reversal of CENVAT credit on partial writing down of value of inputs, the provision was introduced only first time by amendment of Rule 3(5B) of CENVAT Credit Rules, with effect from 01.03.2011. Further, there was no provision prior to 01 March 2013 for recovery of CENVAT credit and interest thereon under Rule 3(5B) etc. which was made applicable with effect from 01.3.2013 only, by virtue of Notification No. 3 of 2013-CE(NT) dated 01.03.2013. The notification provides that if the manufacturer of goods or the provider of output service fails to paythe amount payable under sub-rule (5), (5A) and (5B), it shall be recovered, in the manner as provided in Rule 14, for recovery of CENVAT credit wrongly taken. 8. Learned Counsel have also pressed the ground that as they were not required to reverse the CENVAT credit on partial writing down the value of inputs, prior to 01.03.2011, accordingly, we hold that as there was no such legal requirement. The learned Counsel also prays that they are entitled t....