CA Bimal Jain
The Department has alleged that Hazira Marine Engg. & Const. Mgmt. P. Ltd. (the Respondent) has availed ineligible Cenvat credit and thereby liable to pay penalty under Section 76 of the Finance Act without invoking any provisions for imposition of penalties on the Respondent for improper availment of Cenvat credit.
The Hon’ble CESTAT, Mumbai held that when the Department has not invoked the provisions for imposition of penalties under relevant Section(s), therefore, the argument put forth by the Department for imposition of penalty under the Credit Rules is unsustainable.
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