C.C.E. & S.T. Indore vs M/S. Ruchi Soya Industries Ltd

[Arising out of Order-In-Appeal No. IND-EXCUS-000-APP-056-2014, dated 27.02.2014 passed by CCE (Appeals) Indore]

For approval and signature:

Hon'ble Mr. S.K. Mohanty, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

C.C.E. & S.T. Indore Appellant

Vs.

M/s. Ruchi Soya Industries Ltd. Respondent

Appearance:

Mr. R.K. Gupta, DR for the Appellant

Mr. R. C. Chaure (Advocate) for the Respondent

CORAM:

Hon'ble Mr. S.K. Mohanty, Member (Judicial)

Date of Hearing.23.07.2015

Final Order No. 53995 /2015_

Per S. K. Mohanty:

The brief facts of the case are that during the disputed period, the Respondent herein had availed cenvat credit in their books of accounts on the strength of GR-7 Challan. Realizing the mistake that the said document is not proper and valid for availment of cenvat credit, the respondent had reversed the same in the month of January 2011 and also deposited the interest amount for late reversal of such credit. However, in the adjudication order, interest liability was again confirmed and penalty imposed for wrong availment of cenvat credit. In appeal, the Commissioner (Appeals) vide the impugned order has set aside the adjudication order and granted consequential relief to the Respondent. Hence, this present appeal by the Revenue.

2. Heard the Ld. Counsel for both the sides and perused the records.

3. It is an admitted fact on record that after reversal of wrongly availed cenvat credit and payment of interest, the Department had issued the SCN on 27.12.2011, seeking disallowance of wrongly availed cenvat credit along with interest and for imposition of penalty. Since, the entire irregularly availed cenvat credit was reversed along with interest, there is no question of confirmation of any interest liability, for the reason that the same will amount to double payment of interest and also there is no loss of Revenue to the Government Exchequer, for which the Respondent can compensate the loss. Further, the cenvat credit wrongly availed by the Respondent has not been utilized for clearance of the final product from the factory. Thus, there is no suppression on the part of the Respondent with the intention to defraud the Government Revenue. Hence, penalty imposed in the adjudication order is not justified. In view of above, I am of the opinion that there is no infirmity in the impugned order passed by the Ld. Commissioner (Appeals) in allowing the appeal of the Respondent herein. Therefore, the appeal filed by the Revenue has no merits, and thus, the same is dismissed.

(Operative portion of the order pronounced in open court)

(S. K. Mohanty)

Member(Judicial)

Neha

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