2008 (12) TMI 614 - AT - Central Excise

Summary

Issues involved:
1. Reversal of Cenvat credit on inputs when switching from SSI exemption to normal rate and duty on scrap.
2. Penalty imposition on the appellant and the proprietor of the respondent firm.

Reversal of Cenvat credit on inputs:
The respondent, a SSI unit, switched from Cenvat credit service to SSI exemption, leaving a stock of inputs with credit. The dispute was whether this credit had to be reversed. The Commissioner (Appeals) relied on a previous judgment and held that the credit did not need to be reversed. The Revenue challenged this decision, citing other Tribunal judgments where reversal was required. The Tribunal referred to recent cases and held that the credit did not need to be reversed, dismissing the Revenue's appeal.

Duty on scrap and Penalty imposition:
The Commissioner (Appeals) upheld a duty demand on scrap but reduced the penalty on the Appellant. The penalty on the respondent firm's proprietor was set aside. The Revenue appealed these decisions, arguing for the reversal of the Cenvat credit and the penalty imposition. The Tribunal upheld the Commissioner (Appeals)'s decisions, stating that the penalties imposed were justified and no separate penalty on the proprietor was necessary based on previous Tribunal judgments.

In conclusion, the Tribunal dismissed the Revenue's appeals, affirming the decisions regarding the reversal of Cenvat credit on inputs and the penalty imposition, in line with relevant Tribunal judgments.