M/S Bharat Sanchar Nigam Pvt. Ltd vs C.C.E. & S.T. Bhopal
- CitationService Tax Appeal No. ST/54184/2014-[SM]
Ratio decidendi
The rule this decision rests on
Where cenvat credit has been wrongly availed and is reversed only after a delay, interest is payable on the delayed reversal under Section 75 of the Finance Act, 1994, and such interest liability is automatic, arising from the delay itself without any further finding of intent or fault.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-In-Appeal No. BPL/EXCUS-000-APP-026-14-15 dated 09.05.2014 passed by CCE Bhopal]
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?
M/s Bharat Sanchar Nigam Pvt. Ltd. ...Appellant(s)
Vs.
C.C.E. & S.T. Bhopal Respondent(s)
Appearance:
None appeared for the Appellant
Mr. R K Mishra DR for the Respondent
CORAM:
Hon'ble Mr. S.K. Mohanty, Member (Judicial)
Date of Hearing/ Decision. 04.09.2015
Final Order No. 54049 /2015_
Per S K Mohanty:
This appeal is directed against the impugned order dated 9.5.2014 passed by the Commissioner (Appeals), Bhopal confirming the interest amount for delayed reversal of cenvat credit, in terms of Section 75 of the Finance Act, 1994.
2. I find from the available records that the appellant had availed cenvat credit on capital goods which were removed as waste and scrap from the factory. Upon detection of such mistake by the Central Excise Officials the appellant had suo motto reversed the cenvat credit. Since the cenvat credit was only reversed and no interest was paid for delayed reversal of cenvat credit, the Central Excise Department confirmed the interest liability in terms of Section 75 of the Finance Act, 1994.
3. Since there is delay in reversal of cenvat credit, I am of the opinion that interest liability is automatic and the same is required to be paid by the appellant. Therefore, I do not find any infirmity in the impugned order and dismiss the appeal filed by appellant.
(Dictated and pronounced in open court)
(S. K. Mohanty)
Member(Judicial)
Neha
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ST/54184/2014-[SM]
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