Order date: 15 June 2022

Facts:

• The appellant, M/s Westrock India Private Limited, had availed the Cenvat Credit on the common input service attributed to the four units, while according to the department they were entitled only to the proportionate credit attributed to their unit only.
• Hence, the Cenvat credit attributed to the appellant’s unit was disallowed and the penalty of 50 % was imposed and interest was also demanded.
• Aggrieved, the appellant filed an appeal seeking waiver of penalty on the grounds that though they have availed the credit but the same was paid back without utilization.

Issue: 

• Whether the Cenvat credit availed by the appellant which is attributed to another unit is right or wrong?

Order:  

• The Tribunal observed that the appellants had availed the wrongful credit but considering that they reversed the Cenvet credit availed without utilizing it makes it clear that they were not having malafide intensions.
• Hence, the penalty was set aside and the appeal was allowed.