Penna Cement Industries Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad)
Summary: CESTAT Hyderabad partly allowed the appeal of Penna Cement Industries Ltd concerning CENVAT credit of ₹8,37,49,447 on Clean Energy Cess. The Commissioner had held that the appellant was not entitled to avail such credit and had confirmed its denial and recovery. Since the assessee had already reversed the amount under protest, the Commissioner appropriated the reversal, vacated the protest and also imposed a penalty of ₹5,000 under Rule 15(1) of the CENVAT Credit Rules, 2004.
The Tribunal noted that the short dispute was whether Clean Energy Cess was available as CENVAT credit under Rule 3 of the CENVAT Credit Rules, 2004. Both sides acknowledged that an earlier Final Order dated 16.07.2019 had disposed of nine appeals, including an appeal concerning the present appellant, on the same issue. In that order, the Tribunal had held that Clean Energy Cess, not being covered under Rule 3, was not available as CENVAT credit, although penalties had been set aside. The appellant informed the Tribunal that the earlier order had been challenged before the Andhra Pradesh High Court but that there was no stay. Finding no reason to differ from its previous order, CESTAT upheld the remainder of the impugned order but set aside the ₹5,000 penalty. The appeal was consequently partly allowed.
