M/S Maruti Suzuki India Ltd vs C.C.E. Delhi-Iii

Customs Excise and Service Tax Appellate Tribunal16 June 2015

CitationExcise Appeal No. E/57601/2013 -Ex[SM]

Ratio decidendi

The rule this decision rests on

For the period 2006-07 and 2007-08, the penalty for wrong availment of Cenvat credit under Rule 15 of the Cenvat Credit Rules, 2004 is governed by the unamended Rule 15 (in force up to 27.02.2010), and under sub-rule (3) of that Rule the penalty is capped at an amount not exceeding Rs. 10,000; a penalty equal to the duty under section 11AC of the Central Excise Act, 1944 cannot be imposed for such wrong availment in that period.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE AND SERVICE TAXAPPELLATE TRIBUNAL, NEW DELHIPRINCIPAL BENCH, COURT NO. IIIExcise Appeal No. E/57601/2013 -Ex[SM]

[Arising out of Order-In-Appeal No. 55/SVS/GGN/2013 dated: 30.01.2013 passed by Commissioner (Appeals) Delhi-III]

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 Maruti Suzuki India Ltd. ...Appellant

Vs.

C.C.E. Delhi-III Respondent

Appearance:

Mr. R. S. Tandon, Advocate for the Appellants

Mr. M. S. Negi, DR for the Respondent

CORAM:

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

Date of Hearing.16.06.2015

FINAL ORDER NO. 52136 /2015

Per S. K. Mohanty:

Imposition of penalty of Rs.1,07,884/- under Rule 15 of the Cenvat Credit Rules, 2004, read with section 11AC of the Central Excise Act 1944 is the subject matter of present dispute. According to the appellant, since the dispute relates to the period 2006-07 and 2007-08, the provisions of the unamended Rule 15 (effective upto 27.02.2010) will have the application for imposition of penalty. As per sub-rule (3) of the said rules, the maximum penalty of Rs. Rs. 10,000/- can only be imposed and the provisions of section 11AC can not be invoked for imposition of penalty under the said rule.

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

3. The short question involved in this appeal for consideration is, as to whether, imposition of equal amount of penalty under section 11AC of the Act is justified for the period prior to amendment of Rule 15 of the Cenvat Credit Rules, 2004. Since the dispute involved in the present case is for the period 2006-07 and 2007-08, the unamended provision of Rule 15, effective up to 27.02.2010 will have the application for imposition of penalty. Sub-rule (3) of the said Rule provides that in case of wrong availment of cenvat credit, the assessee is liable to pay penalty which may extend to an amount not exceeding Rs. 10,000/-. Considering the said statutory provisions, the penalty amount in the present case is reduced to Rs.10,000/-. The Appeal is disposed of in above terms.

(Dictated and pronounced in open court)

(S.K. Mohanty)

Member(Judicial)

Anita

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