Case Law Details
Commissioner of Central Excise Vs M/s. Madras Cements Ltd. (Madras High Court)
Madras High Court has dismissed an appeal against the CESTAT order wherein the Tribunal had set aside the penalty and allowed Cenvat credit on MS items used for fabrication of support structures, while remanding the matter for computation of credit. The Tribunal had held that since only the issue of interpretation was involved, imposition of penalty was unwarranted. The Department did not dispute the entitlement to such Cenvat credit before the High Court. The High Court held that the finding of the Tribunal relating to penalty were not beyond the scope of power of the Tribunal under Section 35C of the Central Excise Act, 1944. It noted that the words ‘as it thinks fit’ under Section 35C(1) are wide enough to confer such power upon the Tribunal to exercise its discretion, while remanding the case only for the purpose of computation of Cenvat credit, for which the assessee was found entitled. It also held that so long as entitlement to avail Cenvat credit was not validly disputed by the Department, it cannot insist on an open remand.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
The Revenue, has filed the present appeal against the Respondent/Assessee, M/s.Madras Cement Limited aggrieved by the order dated 07.02.2018, by which, the learned CESTAT, Chennai allowed the appeal of the assessee and held that in view of the various judgments referred to in paragraph 5 of the order, the Assessee was entitled to avail cenvat credit on MS items/iron and steel used for fabrication of goods or support structures. For the purpose of computation of such cenvat credit, the matter was remanded back by the learned Appellate Tribunal to the Adjudicating Authority. Taking into account the aforesaid decisions, while doing so, the learned Tribunal, however held that since only the issue of interpretation was involved, the imposition of penalty in such cases was unwarranted and therefore, the penalties were set aside.
2. Paragraph 5 and 6 of the order of the learned Tribunal is quoted for ready reference:
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