AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 250
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....t, 1994 (for which they were duly registered). As per rule 3(1) of CENVAT Credit Rules, 2004 ("rules"), as it existed during relevant time, a manufacturer or producer of final products or a provider of taxable service was allowed to take credit of the duty of excise paid on any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after 10th day of September, 2004. As per rule 2 (k)(ii) of the said rules, "input" means all goods used for providing any output service (except light diesel oil, high speed diesel oil, motor spirit commonly known as petrol and motor vehicles). As per rule 2(a)(B) of the said rules, "capital goods" means motor vehicles registered in the ....
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....The time limit prescribed in section 73 (1) of Finance Act, 1994, at the material time, was 12 months. The appellant had taken the credit on the basis of bona fide belief that they were eligible for credit considering that the goods were used in providing taxable output service and they were not confronted with any objection by department for over three years of filing periodical returns in a regular manner. There is no allegation regarding nonfiling or late filing of periodical returns. 2.1 Reliance has placed on the decision of Hon'ble Tribunal in the case of M/s. Rajasthan Housing Board, Rajasthan v/s Commissioner, CGST-Jodhpur, Rajasthan, 2025 (10) TMI 723 - CESTAT NEW DELHI, wherein, on similar grounds, invocation of extended period....
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....ed on the following decisions: (i) Sunflag Filaments Ltd. - 2009 (245) ELT 209 (Tri. - Ahmd.) (ii) Nidhi Pipes Ltd. - 2016 (343) ELT 1014 (Tri. - Chan.) (iii) Sanghi Industries Ltd. - 2013 (294) ELT 303 (Tri. - Ahmd.) 3.1 In view of above, it is prayed to quash and set aside the impugned order demanding recovery of entire credit amount and restrict it to interest on credit (and not credit per se) covered by normal period of 12 months permitted under section 73 (1), after deleting extended period of limitation, if any such credit is found to have been taken during the period of 12 months immediately preceding issuance of the show cause notice. 4. Learned AR on the other hand reiterates the finding of the lowe....
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....bonafide belief in B. GIRIJAPATHI REDDY & COMPANY vs. CC EX. & S.T., GUNTUR as reported in 2019 (370) ELT 819 (Tri. Hyd.). Considering the language of the statutory provisions, the following observations contained in Para 11 to 15 in the matter of GANTA RAMANAIAH NAIDU cited above are relevant even in this case. 11. For the purpose of arriving at the correct conclusion whether the appellant is eligible to avail cenvat credit of the duty paid on the tippers as cleared by the manufacturer, we have to read the provisions of Rule 2 of Cenvat Credit Rules and more specifically Rule 2(a), 2(k) i.e. definition of capital goods and inputs. "Rule 2. Definitions. - In these rules, unless the context otherwise requires, (a) ....
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...., or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles used for providing any output service." 12. It can be noticed from the above reproduced definition the capital goods as to fall under categories as indicated in Rule 2(a)(A)(i) i.e. under Chapter 82,4 or 90 with the exclusion it can be seen that Chapter 87 has been kept out of the purview of the capital goods. It is also seen that sub-rule (a)(B) specifically allows credit of duty paid on motor vehicles registered in the name of provider of outpu....
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....considered view that the penalty imposed on the appellant is liable to be set aside and we do so. 14. As regards the interest under Rule 14 of the Cenvat Credit Rules read with Section 75 of the Act, we find that the said interest is also unwarranted as it is the contention of the appellant that sufficient balance was available in the Cenvat credit at the relevant period i.e. say the appellant has not utilized the credit availed by them and it was in records as credit only. We find from the OIO that the appellants contention that they had only availed credit but not utilized the same for payment of Service tax has not been disputed by the adjudicating authority nor there is any finding contrary to the submission made by the appella....