Custom, Excise & Service Tax Tribunal
M/S. Standard Surfactants Ltd vs C.C.E. & S.T., Bhopal on 16 June, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066. COURT - II Application No.E/STAY/52602/2014-EX[SM] Appeal No. E/52094/2014- EX[SM] [Arising out of Order-in-Appeal No.BPL-EXCUS-000-APP-173-13-14, dated 18.12.2013 passed by C.C.E.&S.T., Bhopal] M/s. Standard Surfactants Ltd. : Appellants Vs. C.C.E. & S.T., Bhopal : Respondents
Present for the Appellants :
Shri Amit Awasti, Advocate Present for the Respondents :
Shri RK Mishra, DR Coram: Honble Mr.D.N.Panda, Judicial Member Date of Hearing : 16.06.2014 FINAL ORDER NO.52485/2014, DATED 16.06.2014 PER: D.N.PANDA Both sides agree that the dispute can be resolved if para 5.1 of the order of ld. commissioner (Appeals) is looked into. Ld. counsel says that reversing CENVAT credit for the period May, 2005 to 31.03.2008 as per option granted by law, Rs.1,98,069/- is recoverable towards CENVAT credit availed. Interest thereon is also chargeable. Appellant has paid above amount along with interest.
2. Ld. Departmental Representative says that the averments of discharge of entire amount of demand of Rs.15,00,960/- shall be verified by the ld. adjudicating authority to settle the dispute.
2. The next question comes is penalty, which has been imposed by ld. commissioner (Appeals) to the tune of Rs.1,98,069/- considering that option was not exercisable for the period 2008-09 and 2009-10 warranting recovery of leviable amount. Ld. counsel says that the appellant was under the bona fide belief that when the application for reversal was made, such facility is also available for the years 2008-09 and 2009-10. Therefore, no penalty may be levied.
3. Considering the approach of both sides above and also the co-operation of the assessee, who says to have discharged the duty with interest averred by him in Memo of Appeal (subject to verification by Revenue), the penalty is reduced to 25% of the tax element of Rs.1,98,069/-.
4. In the result, the tax component of Rs.1,98,069/- with interest is confirmed and the penalty is reduced to 25% thereof.
5. In view of the above, the stay application is allowed and the appeal is disposed to the extent indicated above.
(Dictated and pronounced in open Court) (D.N.PANDA) JUDICIAL MEMBER SSK
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Appeal No.E/52094/2014