Custom, Excise & Service Tax Tribunal
M/S. Sri Kumaran Alloys (P) Ltd vs Commissioner Of Central Excise, Salem on 6 February, 2015
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
E/S/41977/2014 and E/41693/2014
[Arising out of Orders-in-Appeal No.124/2014-CE, dated 23.04.2014 passed by the Commissioner of Central Excise (Appeals), Salem]
M/s. SRI KUMARAN ALLOYS (P) LTD.
APPELLANT
Versus
COMMISSIONER OF CENTRAL EXCISE, SALEM
RESPONDENT
Appearance:
For the Appellant Shri Seeni Kanappan Adv.
For the Respondent Shri B. Balamurugan AC (AR) CORAM:
Honble Shri D.N. Panda, Judicial Member Date of hearing/decision 06-02-2015 FINAL ORDER NO. 40126 / 2015 Learned counsel says that it is a SSI and it has not at all availed any Cenvat credit, although the capital goods credit was recorded in the RG-23 A Register. He further submits that mere recording of the transaction without utilisation thereof shall not penalize the appellant nor shall warrant any deposit of interest. However, the appellant has faced penalty of Rs.8,00,000/-.
2. Revenue supports the adjudication.
3. Heard both sides and perused the records.
4. Both sides also agree that the appellant is a SSI and has not availed Cenvat credit. Therefore, the capital goods credit only remain as entry in the books. Levying of the interest on the unutilized Cenvat credit shall be contrary to the decision of the Supreme Court in the case of Commissioner of Central Excise, Mumbai-I Vs Bombay Dyeing & Manufacturing Co. Ltd. reported in 2007 (215) E.L.T. 3 (S.C.). Considering such practical difficulty, the Finance Act, 2012 enacted provision for no levy of interest on unutilized credit. Therefore, there shall not be any levy of interest on the appellant although capital goods credit was recorded in the RG-23A register.
5. The appellant no doubt recorded the credit in record contravening law. Therefore, imposition of penalty of Rs.1,00,000/- (Rupees One Lakh only) shall serve the interest of justice.
6. Appeal is thus allowed directing the appellant to deposit Rs.1,00,000/- (Rupees One Lakh only) within four weeks from today and produce challan before the Adjudicating authority by 20th March, 2015 to satisfy him carrying out of the terms of this order. If the appellant fails to make such deposit and comply to this order, this shall stand vacated and both the stay application and appeal stand dismissed.
7. In the result both the stay application and appeal are disposed on above terms. (Dictated and pronounced in open court) (D.N. PANDA) JUDICIAL MEMBER ksr 07-02-2015 DRAFT Remarks I II III Date of dictation 06.02.2015 Draft Order - Date of typing 06.02.2015 Fair Order Typing 07.02.2015 Date of number and date of dispatch 4 E/S/41977/2014 and E/41693/2014