CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 2 Central Excise Appeal No. 21035 of 2017 (Arising out of Order-in-Original No. BEL/EXCUS/000/COM/BKK/057/16-17 dated

30.03.2017 passed by the Commissioner of Central Excise and Customs, Belgaum)

M/s. Jindal Saw Limited Jindal Centre, 12 Bhikaji Cama Place, New Delhi. - 110066. ........Appellant VERSUS Commissioner of Central Excise, Belgaum No. 71, Club Road, Belgaum, Karnataka – 590001. ............Respondent Appearance:

Mr. Muthu Venkatraman & Mr. Aryaman Ghulati, Advocates for the Appellant Mr. Vinod Kumar Garhwal, Authorised Representative (AR) for the Respondent CORAM:

Hon'ble Mr. P.A. Augustian, Member (Judicial)

Hon'ble Mr. Pullela Nageswara Rao, Member (Technical)

Final Order No. 20285 /2026 Date of Hearing: 23.09.2025 Date of Decision: 12.03.2026 Per: P. A. Augustian The present appeal is filed by M/s. Sathavahana Ispat Ltd (herein after referred as assessee) against the impugned order dated 30.03.2017 challenging recovery of CENVAT credit availed allegedly irregularly during the period from 17.03.2012 to 31.03.2015. However, during pendency of the present appeal, insolvency proceedings were initiated against the original Appellant under Section 9 of the Insolvency & Bankruptcy Code (IBC), 2016 by one of the operational creditor M/s Thirumala Logistics and the Department filed their claim in relation to the impugned order on 24.09.2021. After due process, M/s Jindal Saw Ltd (JSL) (herein after referred as Appellant) was the successful resolution applicant and was approved by NCLT vide order dated 31.03.2023. Admitted claims were settled @ 38.48%. Accordingly, in addition to the amount deposited prior to show cause notice and pre-deposit, total duty demanded as per the claim of the Department was Rs. 16,10,892/- and as per the NCLT order dated 31.03.2023, the amount payable is settled as Rs.6,19,871/-. As per said order, an amount of Rs. 6,19,797/- was paid by the present Appellant and issue regarding demand of duty is settled, accordingly. Thereafter, appellant herein filed a petition for continuance of the proceedings under Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 to consider the issue regarding invocation of extended period of limitation and imposition of penalty under Section 11AC. In support of the same, affidavit is also filed by the appellant herein stating that no amount would be liable to be refunded to the appellant herein even on succeeding the issue before this Tribunal on the aspect of invocation of extended period.

2. As regards the basic issue, Appellant was manufacturer of metallurgical coke and was availing CENVAT credit of duty paid on input, capital goods and input services under the provisions of CENVAT Credit Rules, 2004. During the course of audit, on verification of monthly ER-1 returns, Bills of Entry, Cenvat Register and other allied records, it was observed during the period from September 2011 to August 2012, that the assessee had availed excess Cenvat Credit of Education Cess of Rs.22,86,063/- & SHE Cess of Rs.11,43,035/- totaling to Rs.34,29,103/- on CVD towards import of Coking Coal. On further verification of the details of the above excess Cenvat Credit, it was found that the assessee had, on their own volition calculated, availed & utilised credit on that portion of the Customs Education Cess and Customs SHE Cess which relates to the CVD component. In other words, the assessee had availed credit of a portion of Customs Education Cess and Customs SHE Cess, relatable to the value of CVD reckoned while calculating the said Customs Ed. & Customs SHE cess. Thus, these credits have been availed by mis- representing them as Education Cess and SHE Cess on the CVD. The amount of credit of portion of Customs Cess relating to the CVD component which has been availed and utilized works out to Rs.34,29, 103/- (Customs Education Cess Rs.22,86,068/- & Customs SHE Cess Rs.