- (1.) Instant appeal under Section 35G of the Central Excise Act, 1944 is directed against order of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, dated 11-7-2014.
(2.) The brief facts noticed are that a show cause notice No. C. No. V(H) ST/Adj-I/89/07/2132-334, dated 19-9-2007 and corrigendum dated 11-12-2007 was issued to the respondent assessee where it was claimed that the assessee has availed Cenvat credit of Rs. 13,59,408/- irregularly as detailed in Annexure "A" annexed to the said show cause notice on the basis of an audit objection. A detailed reply was filed by the assessee that it had availed the Cenvat credit correctly and the Head office had issued ATDs (Advise of Transfer) for transferring of Central Excise Duty paid on inputs and capital goods rather centralized at CTSD and that inputs and capital goods are transferred to them by their Head Office under the ATDS. The assessee had also submitted copies of the invoices/duty paying documents showing payment of Central Excise Duty on the capital goods transferred to them by their Head Office. The Additional Commissioner, who also was the adjudicating authority, was satisfied that the duty paying documents are in order accordingly held that the Cenvat credit amount to Rs. 13,59,408/- is admissible to the assessee and dropped the demand of Cenvat credit amounting to Rs. 13,59,408/-.
(3.) The Commissioner scrutinized the order passed by the adjudicating authority dated 25-4-2008 and was of the view that the Additional Commissioner was not justified in dropping the demand of Cenvat credit of Rs. 13,59,408/- and was also not competent to impose penalty u/R. 15 of the Rules and the Commissioner was of the view that the assessee has wrongly availed the Cenvat credit on the strength of the documents which were not prescribed documents in terms of R. 9 and he issued a show cause notice to the assessee as to why the Cenvat credit of Rs. 13,59,408/- should not be recovered as it was irregularly allowed and simultaneously interest u/R. 14 and penalty u/R. 15 be not imposed.;