India's CESTAT upholds excise duty recovery and affirms taxpayer CENVAT credit rights

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Delhi dismissed Kesar Ispat Ltd's appeal and upheld the recovery of ₹7.20 lakh in central excise duty for June 2017, ruling that the company had wrongly utilized CENVAT credit that was not available on the last day of the month.

In a separate decision, the Allahabad Bench of CESTAT ruled that excess service tax paid against cancelled flat bookings constitutes an accrued right of the taxpayer. The tribunal set aside penalties of ₹1.25 lakh and allowed Grace Infraventures Private Limited a CENVAT credit of ₹33.16 lakh, emphasizing that the credit must be protected when tax was paid earlier and later cancelled.

Both rulings clarify the application of CENVAT credit rules and reinforce the procedural requirements for claiming tax credits in India.