tax gyata solution of gst registration cgst act 2017
  • GST
      Techatronic solutions of electronics and robotics coding language and elearning of robotics
    • Act & Rules
      • CGST Act, 2017
      • CGST Rules, 2017
      • IGST Act, 2017
      • IGST Rules, 2017
      • GST Compensation Act
      • UTGST Act
      • UTGST Rules
    • Notifications
      • CGST Notifications
      • CGST (Rate) Notifications
      • IGST Notifications
      • IGST (Rate) Notification
      • CGST Circulars
      • IGST Circulars
    • Orders
      • CGST Orders
      • CGST Removal Of Difficulty Orders
      • UTGST Removal Of Difficulty Orders
    • Forms
    • GST by Category
      • Gst Registration
      • Input Tax Credit
      • Composition Scheme
      • Refund
      • E Way Bill
      • Offences & Penalties
    • Articles
    • News
  • Company law
    • Companies Act, 2013
    • Notifications
    • Articles
  • Income Tax
    • Income Tax Act, 1961
    • Notifications
    • Articles
    • News
  • Accounting
    • Indian Accounting Standards (Ind AS)
    • Accounting Standards (AS)
    • Cost Accounting Standards
    • ICDS
    • Articles
  • Auditing
    • Standards on Auditing (SA)
    • Cost Auditing Standards
    • Secretarial Standards
    • CS Auditing Standards
  • HSN Codes
  • avatar of
    Register
    Login
  • GST
    • Act & Rules
      • CGST Act, 2017
      • CGST Rules, 2017
      • IGST Act, 2017
      • IGST Rules, 2017
      • GST Compensation Act
      • UTGST Act
      • UTGST Rules
    • Notifications
      • CGST Notifications
      • CGST (Rate) Notifications
      • IGST Notifications
      • IGST (Rate) Notification
      • CGST Circulars
      • IGST Circulars
    • Orders
      • CGST Orders
      • CGST Removal Of Difficulty Orders
      • UTGST Removal Of Difficulty Orders
    • Forms
    • GST by Category
      • Gst Registration
      • Input Tax Credit
      • Composition Scheme
      • Refund
      • E Way Bill
      • Offences & Penalties
    • Articles
    • News
  • Company law
    • Companies Act, 2013
    • Notifications
    • Articles
  • Income Tax
    • Income Tax Act, 1961
    • Notifications
    • Articles
    • News
  • Accounting
    • Indian Accounting Standards (Ind AS)
    • Accounting Standards (AS)
    • Cost Accounting Standards
    • ICDS
    • Articles
  • Auditing
    • Standards on Auditing (SA)
    • Cost Auditing Standards
    • Secretarial Standards
    • CS Auditing Standards
  • HSN Codes

Tribunal When Already Decided In Applicant Favour, Denial Of Cenvat Credit & Imposition Of Penalty Cannot Sustain

Tax Gyata | GST | Case Laws

M/s KEI Industries Ltd. Vs Commissioner of Central Excise (CESTAT Delhi)

CategoryGST Case Laws
Applicant/PetitionerM/s KEI Industries Ltd.
RespondentCommissioner of Central Excise (CESTAT Delhi)
Order Date21-Apr-2022
Order Number Excise Appeal No. 50149 of 2014
Honorable CourtCESTAT Delhi
Citation2022 (4) taxgyata 1230

CESTAT has held that this Tribunal had already decided, by a detailed order dated 23.05.2018, that this allegation is not true and VKM had manufactured copper ingots. Therefore, no basis remains for denial of Cenvat credit to the appellant/assessee herein. Consequently, the imposition of penalty upon the assessee and Shri Anil Gupta, Director of the assessee also cannot sustain.



Share :

These two appeals have been filed assailing the order-in-original dated 26.09.2013 passed by the Commissioner of Central Excise, Delhi – II1. The operative part of the impugned order is as follows :-

“1. I disallow the Cenvat credit amounting to Rs. 57,48,536/- (Rupees Fifty Seven Lacs Forty Eight Thousand Five Hundred and Thirty Six only) availed and utilized by M/s KEI Industries Limited during the period April, 2005 to March, 2006 and order for the recovery of the said amount from M/s KEI Industries Ltd. under Rule 14 of the Cenvat Credit Rules, 2004 readwith proviso to Section 11A (1) of the Central Excise Act, 1994 ;

2. I order to recover the interest from M/s KEI Industries Limited under Rule 14 of the Cenvat Credit Rules, 204 readwith Section 11AB and Section 11AA of the Act ibid;

3. I impose penalty amounting to Rs. 57,48,536/- (Rupees Fifty Seven Lacs Forty Eight Thousand Five Hundred and Thirty Six only) under Rule 15 (2) of the Cenvat Credit Rules, 2004 readwith Section 11AC of the Act and order to recover the same from M/s KEI Industries Limited ;

4. I impose personal penalty of Rs. 5,00,000/- (Rupees Five Lakhs only) on Shri Anil Gupta, Chairman-cum-Managing Director of M/s KEI Industries Ltd.”

2. Appeal No. E/50149 of 2014 is filed by M/s KEI Industries, while Appeal No. 50150 of 2014 is filed by Shri Anil Gupta, the Director of M/s KEI Industries2.

3. The facts of the case, in brief, are that the assessee is engaged in manufacture of electric wires and cables and winding wires of copper falling under Chapter 8544 of Central Excise Tariff Act, 1985 and is registered with the Central Excise Department. It avails the benefit of Cenvat credit under Cenvat Credit Rules, 2004. The assessee purchased copper ingots during the period 2005-2006 from M/s V.K. Metal Works3, Jammu and sent them directly to its job workers for converting them into copper wire rods. It received and used the wire rods to manufacture electric wires and cables. The assessee availed Cenvat credit on the invoices issued by VKM after following the proper procedures.

4. The officers of Directorate General of Central Excise Intelligence4 visited the factory of VKM on 29.11.2006, collected information, investigated and came to the conclusion that VKM had issued invoices without receiving any raw material and without manufacturing and supplying copper ingots. Based on this investigation, a show cause notice dated 05.01.2010 was issued to VKM demanding central excise duty of Rs. 42,37,24,491/-. Show cause notices were also issued to various buyers of VKM including the assessee herein seeking to deny Cenvat credit on the strength of the invoices issued by VKM on the ground that since VKM had not manufactured any ingots, it could not have supplied them to its buyers and only invoices were issued without supplying any ingots. The orders passed by the Commissioner deciding many such show cause notices were appealed against and disposed of by this Tribunal by Final order No. A/51982-51997 of 2018 – EX (DB) dated 23.05.2018. It was held that the allegation that VKM had not manufactured and supplied copper ingots and only issued invoices was not correct. Consequently, the demand against VKM was set aside as also the orders seeking to deny Cenvat credit to the buyers of VKM. Paragraph 6 of this order is as follows :-

“6. We have considered the submissions of all the appellants who are recipients of copper ingots from VKM. While deciding the first batch of appeals which relate to VKM and others, we have already held that VKM had duly manufactured copper ingots from copper scrap and cleared the same from their unit on appropriate payment of Central Excise duty. There is ample evidence on record that all the recipients of copper ingots had duly received the same in their respective units and utilized the same in the manufacture of finished goods which these units cleared on payment of appropriate Central Excise duty. There is neither any allegation nor findings that the manufacturers in question had procured the copper ingots which they utilized as raw material from any other alternative source. We therefore hold that all the appellants had correctly availed utilized Cenvat credit on copper ingots which they had received from VKM. Consequently, neither the Cenvat credit can be disallowed or denied nor any penalty can be imposed on the appellants”.

5. The basis of the allegations in the show cause notice in this case and denial of Cenvat credit by the impugned order and imposition of penalties is also on the ground that M/s VKM had not manufactured any copper ingots and had only issued invoices to the appellant. This Tribunal had already decided, by a detailed order dated 23.05.2018, that this allegation is not true and VKM had manufactured copper ingots. Therefore, no basis remains for denial of Cenvat credit to the appellant/assessee herein. Consequently, the imposition of penalty upon the assessee and Shri Anil Gupta, Director of the assessee also cannot sustain.

6. In view of the above, we find that the impugned order dated 26.09.2013 cannot be sustained. The impugned order is, accordingly set aside and both appeals are allowed with consequential relief to the appellants, if any.

(Order pronounced in open court on 22/04/2022.)

Notes :-

1 impugned order

2 assessee

3 VKM

4 DGCEI


Relevant Statutory Provisions

Latest Judgments

  • GST
  • Income Tax
  • Company Law

Cenvat Credit On Proforma Invoices Cannot Be Denied: CESTAT

Spot Memo Issued By GST Department Quashed By Calcutta High Court

No Conflict Between Power Of Levy Of GST And Advertisement Tax: Karnataka High Court

Tribunal When Already Decided In Applicant Favour, Denial Of Cenvat Credit & Imposition Of Penalty Cannot Sustain

Summary Of Show-Cause Notice As Issued In Form GST DRC-01 cannot substitute the requirement of a proper show-cause notice: Jharkhand High Court

Service Recipient Cannot Seek Advance Ruling To Determine SAC & GST Rate: AAR Gujarat

Non-Filing Of Response Due To Technical Glitch In E-Filing Portal, Delhi High Court Quashes Order

Delhi High Court Stays Reassessment Proceedings Due To Credentials of BHEL

Threshold limit u/s 44B: ITAT Allows Computation Of Turnover Of Intraday Equity Transactions On Net Basis

Wrongful Withholding Of Cash By Income Tax Dept, High Court Imposes 6% Interest

Truck Parts Replacement Cannot Be Considered As Bringing Into Existence Any New Asset: ITAT

Violation Of Principles Of Natural Justice, Delhi High Court Quash Assessment Order Passed By Revenue

Cairn India Limited vs Unknown

SC directs Government to fill up vacancies of NCLAT and NCLT within two months

Niklesh Tirathdas Nihalani vs Shah Poddar Nihlani Organisers (P.) Ltd.

AQD Rules do not empower ROC to deactivate DIN - Madras HC

Tax Gyata

Complete Solution to GST, income tax, and company laws. Acts, rules, notifications, case laws & many more. Trusted by more than 50000+ professional and taxpayers

Information

About Us Advertise with Us Contact Us Career With Us Build With TaxGyata

Quick Links

GST Income tax Company Law Articles News

Judgments

Supreme Court High Court ITAT Orders GST Advance Rulings
Privacy Policy | Terms & Conditions | Sitemap
© All Rights Reserved. Copyright TaxGyata 2022.