No Penalty on Bonafide Reversal of CENVAT Credit by Tyre Manufacturer

CEAT LTD Vs Commissioner CGST & Central Excise (CESTAT Mumbai) CESTAT Mumbai Sets Aside Penalty on Reversed CENVAT Credit, Confirms Interest Liability on CEAT Ltd. The CESTAT Mumbai has ruled in favor of Ceat Ltd, setting aside a penalty imposed on the company for an allegedly inadmissible CENVAT credit. Ceat had initially claimed a credit of Rs.13,06,662 on service tax for the construction of foundations and structures, but after a CERA audit identified the credit as inadmissible, the company voluntarily reversed the amount before a show-cause notice was even issued. Despite this, the Co...