Case Law Details
Commissioner of Central Excise & Service Tax Vs Kohinoor Steel Private Limited (CESTAT Kolkata)
It is observed that the assessee has rightly availed the 50% of the capital goods Credit in the first year of its receipt and the remaining 50% of the credit in the subsequent year. The excess credit availed for the second time has been reversed along with interest by the assessee themselves before issue of the Show Cause Notice. The Ld. Adjudicating authority has rightly observed that there is no intention to avail the irregular credit in this case and hence dropped the proposed penalty under Rule 15(2) of the CENVAT Credit Rules. We find that there is no evidence on record to establish that the Appellant has intentionally availed the irregular credit. We agree with the findings of the Adjudicating authority and hold that there is no penalty imposable in this case.
FULL TEXT OF THE CESTAT KOLKATA ORDER
Heard the Ld. Authorized Representative for the Department, who reiterated the points stated in the grounds of Appeal.
2. The facts of the case are that the assessee were entitled to take 50% of the credit of the capital goods in the year of its receipt and the remaining 50% credit was to be taken in the next financial year. In the present case, the assessee had rightly taken 50% of the credit of the capital goods in the first year of its receipt and availed 50% of the remaining credit in the subsequent year. However, the assessee has again availed 50% of the credit in the same year. It is observed that the assessee has reversed the excess credit availed along with interest before issue of the Show Cause Notice by the Department.
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