2018 (11) TMI 1377 – CESTAT KOLKATA – TMI – Irregular availment of CENVAT Credit – the said credit was adjusted before issuance of the show cause notice – demand of interest and penalty – Held that:- There is no dispute regarding quantum of the credit availed and subsequently reversed by the assessee. They also paid the interest amounting to ₹ 18,552/- much before issuance of the SCN and the same finds mentioned in the show cause notice and has also been appropriated in the adjudication order.
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Penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 – Held that:- The CENVAT credit taken by the appellant was reversed much before issuance of the SCN and the same has already been appropriated by the adjudicating authority. Though there is allegation in the show cause notice regarding suppression, but it has not been specifically explained in the show cause notice as well as in the adjudication order as to how the intent
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he appellant is engaged in the manufacture of M.S. Pole Black Pipe, G.I. Pipe, S.T. Pole Accessories, G.I. H.M. Pole, G.I. Tower, PVC/SWR Pipe & Fittings, Hand Pump etc. classifiable under Chapter 73,39 and 84 of the First Schedule to the Central Excise Tariff Act, 1985. They are availing the services of different persons and are also paying the service tax on such services. The services being in the nature of security services , professional fees for project report and labour charges for the appellant s other unit situated at Gurap , on residential accommodation of employees and works contract . The period of dispute is 2011-2012. Show cause notice dated 11.01.2013 was issued for disallowance and recovery of cenvat credit of ₹ 1,08,365/- along with interest and imposition of penalty and also for appropriation of the amount already paid by the assessee. The adjudicating authority confirmed the demand of ₹ 1,08,362/- alongwith interest and appropriated the amount paid by
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ad already reversed the credit taken by them and have also paid the interest thereon. I find from the records that the said credit was adjusted before issuance of the show cause notice and this fact also finds mention in the show cause notice itself. Hence, there is no doubt regarding the recovery of irregular credit and the said amount having already been paid by them and has also been appropriated. 4. Ld. DR justified the impugned order. 5. Heard both sides and perused the appeal records. 6. I find from the records that there is no dispute regarding quantum of the credit availed and subsequently reversed by the assessee. They also paid the interest amounting to ₹ 18,552/- much before issuance of the show cause notice and the same finds mentioned in the show cause notice and has also been appropriated in the adjudication order. 7. As regards imposition of penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is concerned
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