2008 (12) TMI 531 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, CHEN Chennai, under the citation 2008 (12) TMI 531, heard an appeal from M/s. Packaging India Pvt. Ltd. (PIL) regarding the demand of Cenvat credit on inputs short received or long rejected. The officers of the department audited PIL's records and discovered a short receipt of inputs, leading to a demand for the reversal of Cenvat credit. The original authority demanded Rs. 1,02,670 as credit relatable to unutilized inputs and imposed a penalty under the Central Excise Rules. The Commissioner (A) affirmed the demand but reduced the penalty. PIL argued that they did not maintain a record called IMMR and that the demand was based on this document, which they had not been provided. PIL contended that the demand and penalty were not sustainable, and the larger period could not be invoked as they had not suppressed any relevant information. PIL cited a Supreme Court decision to support their argument that mere omission to provide correct information did not constitute suppression of facts. PIL also highlighted their history of reversing credits due to short receipts, paying significant central excise duty annually, and availing Cenvat credit. In another appeal, the Revenue sought to increase the penalty under the Central Excise Act. The assessee challenged the demand on limitation, arguing that the demand was barred by limitation and had already been paid. The Commissioner found that the demand was not sustainable due to lack of evidence and that the demand related to the same period as a previous order. The Commissioner dismissed the Revenue's appeals seeking to restore equal penalties, as there was no evidence of fraud, collusion, or willful misstatement. The appeal filed by PIL and the cross-objections were allowed, while the Revenue's appeals were dismissed. The Order was pronounced on 19-12-2008.