News Update

CBIC revises tariff value of edible oils, gold & silverFormer IPS officer Sanjiv Bhatt jailed for 20 yrs for planting drugs to frame lawyerCentre receives Rs 18.5 lakh crore tax revenue upto Feb monthUN says Households waste across world is now at least one billion meals a dayExpert Committee on developing GIFT IFSC as 'Global Finance and Accounting Hub' submits report to IFSCAIndia, China hold fresh dialogue for complete disengagement on Western borders: MEADefence Production issues notification for re-organisation of DGQAThakur says India is prepared for 2036 OlympicsCBDT substitutes Form in ITR-5EV Revolution: Lessons for India to learn from US and China!London court green-signals auction of luxury apartment of fugitive Nirav ModiGovt consults RBI; finalises borrowing plan for first half of FY 2024-25Gadkari says Farmers’ protest is politically-motivatedVP calls upon women entrepreneurs to be 'Vocal for Local'America offers USD 10 mn bounty for information on ‘Blackcat’ hackers after UnitedHealth gets hitI-T- The order of the ITSC can only be reopened in cases of fraud or misrepresentation: HC8 persons including Hezbollah militants killed in Israeli strike on LebanonMacron pillories EU-South Africa trade deal; calls it ‘really bad’ in BrazilThailand’s Lower House okays Bill to legitimise same-sex marriageYellen warns China against clean energy dumpingMilky Way’s central black hole - Twisted magnetic field observedCus - Assessee has not proved beyond reasonable doubt that goods in question imported under air way bills/bills of entry were in fact filed by him and hence the only natural corollary available to Revenue is confiscation of same: CESTATSmall investors help Trump Media’s valuation skyrocket to USD 13 billionJustice Ritu Raj Awasthi joins as Judicial member of Lokpal
 
CX - On being pointed out, Assessee immediately reversed CENVAT Credit wrongly availed by it - there cannot be said to be any fraud through which it wanted to evade Excise Duty - setting aside of interest and penalty cannot be faulted: HC

 

By TIOL News Service

BANGALORE, JULY 17, 2018: THIS is a Revenue appeal against the CESTAT order dated 19/08/2016 - 2017-TIOL-759-CESTAT-BANG.

Following the order in Commissioner of Central Excise & Sales Tax, LTU, Bangalore Vs. Bill Forge Pvt.Ltd. - 2011-TIOL-799-HC-KAR-CX, the Tribunal had held thus -

Central Excise - CENVAT Credit - In view of the precedents, assessee is not liable to pay interest and penalty on the wrongly availed credit since assessee had reversed the credit before utilization of the same and a small portion of the credit that was utilized was reversed along with interest before issuance of SCN - Hence, impugned order set aside - Appeal allowed with consequential relief: CESTAT [para 5]

In appeal, the Counsel for Revenue submitted that since the Respondent Assessee admitted the mistake of Cenvat Credit availed with respect to Basic Customs Duty and Cess on Textiles and it is only when the said mistake was pointed out by the Officer of the Department who visited the Business place of the Assessee, the said entry was reversed by the Respondent Assessee, therefore the learned Tribunal was not justified in setting aside the concurrent finding of the Adjudicating Authority as well as the First Appellate Authority, imposing the interest and penalty on the Respondent Assessee. Reliance was placed on the decisions in Illpea Paramount Pvt.Ltd. - 2006-TIOL-417-HC-P&H-CX ; and Ind-Swift Laboratories Ltd. - 2011-TIOL-21-SC-CX.

The High Court considered the submissions and observed that no substantial question of law arises in the present case and the controversy involved is squarely covered by the decision of the co-ordinate Bench in the case of Commissioner of Central Excise & Sales Tax, LTU, Bangalore Vs. Bill Forge Pvt.Ltd. - 2011-TIOL-799-HC-KAR-CX.

Extracting portions from the said order, the High Court observed that the judgments cited by the counsel for Revenue were 'absolutely distinguishable on facts and do not enure to the benefit of the Appellant -Revenue '.

The High Court further noted -

"8. The imposition of penalty and interest in the present case has been set aside by the learned Tribunal essentially on the ground that soon upon the mistake being pointed out by the Officer of the Department, the Respondent Assessee immediately reversed the Cenvat Credit wrongly availed by it in respect of the Basic Customs Duty (BCD) and Cess on Textiles.

9. In view of this, there cannot be said to be any mis-statement, fraud or collusion on the part of the Respondent Assessee through which it wanted to evade the Excise Duty in question. Therefore, the setting aside of the interest and penalty in these circumstances cannot be faulted."

The Revenue appeal was dismissed.

(See 2018-TIOL-1363-HC-KAR-CX)


POST YOUR COMMENTS
   

AR not Afar by SK Rahman

TIOL Tube Latest

Shri Shailendra Kumar, Trustee, TIOL Trust, giving welcome speech at TIOL Awards 2023




Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023