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Informative

CESTAT quashes Rs.1 Crore CENVAT Credit Recovery against BHEL citing Lack Of Recovery Mechanism during 2006 – 2009

Update / Judgement Date

28 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed a ₹1 crore CENVAT credit recovery against Bharat Heavy Electricals Limited (BHEL). The case involved the recovery of CENVAT credit for the period 2006-2009. The CESTAT found that there was no recovery mechanism in place during that period, rendering the recovery invalid. This decision highlights the importance of having a clear and established recovery mechanism for tax authorities to enforce. The ruling provides relief to BHEL and reinforces the need for proper procedures in tax recovery cases.