Dutiable and Exempted Products - Rs 1.50 CENVAT Credit taken - Demand of over Rs 30 Lakhs
AN assessee who was manufacturing dutiable and allegedly exempted goods, took a credit of approximately one rupee and fifty paise of irregular credit. The Department issued a notice demanding more than thirty lakhs of rupees as 8 percent of the value of the exempted goods. The Tribunal noted that Justifiably, this action of the original authority amused the first appellate authority. The Tribunal also observed that the cause of action for the appellant would also raise the eyebrows of any prudent person.
The Department's appeal was dismissed on the ground that there was no proper authorization.