2026 (5) TMI 373

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....dvocate For the Respondent : Shri Dhananjay Dahiwale, Dy. Commissioner, Authorised Representative ORDER: Confirmation of order passed by the Adjudicating Authority, in holding certain inputs taken by Appellant as inadmissible, by the Commissioner (Appeals) and order for its recovery to the tune of Rs.11,05,642/- under Section 73(1) of the Finance Act, 1994 alongwith equal penalty on such ....

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....ppellant accepted the same and paid the amount of Rs.11,05,642/- on 21.08.2019/- through GST Portal and Audit had not sought for its interest as Appellant was having more than Rs.2 Crores balance of CENVAT Credit in its account during the corresponding period but it was served with show-cause cum-demand notice dated 28.10.2019 for the said amount alongwith equal penalty in invocation of extended p....

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....ken but not utilised for which its recovery with interest or penalty is unsustainable in law when both Audit report as well as show-cause notice clearly indicate that there are more than Rs.2 Crores available to the credit of Appellant at the relevant time, which reinforces that the meagre amount of Rs.11,05,642/- was not at all utilised, so as to proceed for its recovery. On the other hand, Learn....

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....ent, then no recovery notice under Section 73(1) of the Finance Act, 1994 that includes its proviso covering extended period was to be served upon the Assessee. Rule 14 & 15(3) of the CENVAT Credit Rules, 2004 that deals with such recovery requires application of Section 73 of the Finance Act, 1994 mutanties mutandies, to which Section 73(3) is extendable and such penalty being demanded in terms o....