RULE 6(3)(B) OF CENVAT CREDIT RULES, 2004
IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH, while dismssing the appeal filed by the CCEX LUDHIANA vs SANGRUR AGRO LTD. in C.E.A. No.40 of 2007, on 9.2.2010, it was held as follows: -
QUOTE: The short question is whether the respndent is liable to pay penalty and interest on the excess amount claimed by it ? The Commissioner [Appeals] as well as the Tribunalhave held that provisions of Section 11AC of the Central Excise Act are inapplicable as they relate only t short payment of duty, whereas the present case relates to reversal of the excess amount claimed by the respondent in terms of Rule 6(3)(b) of the Cenvat credit rules. Apart from the above, a perusal of the language of Section 11AC of the Central Excise Act shows that the same would be applicable only if in cases where there is an attempt to evade duty. The present case relates to reversal of amount under Rule 6(3)(b) of the Cenvat Credit Rules. We are of the considered opinion that Section 11AC of the Central Excise Act is not applicable in the present case. The findings of the Appellate Tribunal are upheld. UNQUOTE
[for full text of the judgement, please visit http://www.taesinindia.com and click on the citation taxind_2010_hc_ph_cea_40]
VENKATRAMAN RAGGHUPATHY, Web admin.
