21 February 2013
Refer of case 'Commissioner of Central Excise, Mumbai V. Fiat India Pvt. Ltd.,' - 2009 -TMI - 34845 - (CESTAT, MUMBAI)
in this case the respondents were engaged in the manufacture of automobiles and its falling under Chapter heading 87039090 and 87089900 of Central Excise Tariff Act, 1985. During CERA audit, it was observed that the respondents had availed capital goods representing 50% of the duty paid on the capital goods acquired during the year 2002-03. The balance 50% was availed by them in the subsequent year i.e., in the month of April 2003, even though the capital goods though in their possession but were not put in use. As such it was alleged that they had not fulfilled the conditions of provisions of Rule 4(2) of CENVAT Credit Rules, 2002. It was further alleged that the capital goods were put to use on various months of the year 2003-04 and the respondents had not acquired any new capital during the year 2003-04. Show cause notice was issued to the respondent demand interest on the amount of 50% of the capital goods CENVAT Credit availed before the date of its entitlement, under Section 11A and 11AB read with Rule 12 of the CENVAT Credit Rules, 2002. Penalty was also imposed. The same was confirmed by the Adjudicating authority.
CAclubindia
