9911796707
TMI Blog2007 (4) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue relates to levy of interest and imposition of penalty under Rule 13 of Cenvat Credit Rules for alleged wrong utilization of the capital goods. The appellant is engaged in the manufacture of excisable goods i.e. processed fabric. On 25-9-03, a team of Central Excise officers visited factory of Just Textiles Ltd. During the scrutiny of documents it was observed the they have imported certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with interest and the same is liable to be appropriated towards duty. Further it is observed that there is no suppression and willful statement of the facts by the assessee and they have no mala fide intention to evade payment of duty. Therefore, there was no scope to invoke Sec. 11A(1) of Central Excise Act, 1944. Further, it is observed that Sec. 11AC of Central Excise Act will also be not at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fault about non-installation and non-utilization of the capital goods in the factory premises of the assessee itself. This is the main allegation in the show cause notice, but the finding is about wrong availment of Cenvat credit by the assessee on the ground that they sent the capital goods to the job worker. It is also submitted that when the capital goods were not returned back within a period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has already paid Rs. 74,888/- vide PLA Entry No. 129 dated 7-10-03. I am of the further view that Rule 13 of Cenvat Credit Rules, 2002 is equally not applicable since it is not a case of wrong availment of Cenvat credit The ingredients of Rule 13 of Cenvat Credit Rules, 2002 are no way attracted. Therefore, the interest sought to be levied under Sec. 11AB and penalty imposed under Rule 13 of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
