2025 (11) TMI 1539

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....that the appellant are engaged in the manufacture of excisable goods, namely Aluminium Alloy Ingots, etc., falling under Chapter Heading 7601 of Central Excise Tariff Act, 1985. During the course of audit of records, it is observed that the appellant had cleared imported aluminium scrap which was used in the manufacture of 'ingots' to their another unit on stock transfer basis during the period from August 2010 to November 2011 without reversal of cenvat credit availed on such imported scrap as per Rule 3(5) of the Cenvat Credit Rules, 2004. The appellant had reversed the cenvat credit availed on CVD portion but not reversed proportionate cenvat credit on SAD amount of Rs.57,47,391/-. A show-cause notice was issued to them for recovery of t....

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....GKN Driveline (India) Ltd. Vs. CCE, Delhi-III [2023 (9) TMI 1131-CESTAT Chandigarh, examined the retrospective applicability of the said explanation introduced to Rule 3(5) of the Cenvat Credit Rules, 2004 w.e.f. 01.03.2013 and observed that no recovery can be affected under Rule 14 of the Cenvat Credit Rules, 2004 for the period prior to 01.03.2013. This has been followed by this Tribunal in the cases of (i). M/s. Stumpp, Schuele and Somappa Springs Pvt. Ltd. Vs. CCE and ST, LTU Commissionerate, Bangalore [2025 (5) TMI 571 CESTAT Bangalore], (ii). M/s. Bharat Heavy Electricals Ltd. Vs. CCE, Bangalore-III Commissionerate [2024 (10) TMI 1249 CESTAT] and (iii). M/s. Hewlett Packard India Sales Pvt. Ltd. Vs. CST, LTU, Bengaluru - 2024 (8) TMI ....

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....II [2023 (9) TMI 1131- CESTAT Chandigarh, wherein it is observed as follows: "13. Further, we find that during the relevant period, there was no recovery mechanism under Rule 3(5B) of the Cenvat Credit Rules and the explanation which was introduced vide Notification No. 3/2013 dated 01.03.2013 was from 01.03.2013 vide which it was provided that if the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rules (5), (5A), and (5B), it shall be recovered, in the manner as provided in rule 14, for recovery of CENVAT credit wrongly taken. This recovery mechanism introduced from 01.03.2013 cannot be made applicable from the retrospective date and it can be only prospective and this issue was c....