9911796707
TMI Blog2007 (3) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 and during the course of verification of the central excise records, it was noticed that the appellant was manufacturing dutiable as well as exempted goods and was availing Cenvat credit on the common inputs used in the manufacture of dutiable and exempted goods without maintaining separate accounts for the receipts, consumption and inventory of such inputs. A show cause notice was issued to the appellant for demand of 8% of the value of exempted goods cleared during the period August 99 to 6-9-03. The adjudicating authority confirmed the demand and also imposed penalty on the company as well as director and sought to recover from the company interest on the amount not paid. On an appeal, Commissioner (Appeals) also upheld the order in or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty on the director, it is his submission that he was main person responsible for day to day affairs of the company. Hence, a penalty on him is also justified. 5. Considered the submissions made at length by both sides and perused the record. It is not disputed that appellant had manufactured dutiable as well as exempted products during the period by utilizing common input. It is to be noted that appellant has not maintained separate inventory in respect of input so consumed. On being pointed out, appellant paid the entire amount and they are not challenging the said amount. It is on record that there was no recovery mechanism under Rule 57CC or Rule 6 of Cenvat Credit Rules, 2002. On noticing such lacuna, Finance Act of 2005 broug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce or omission on any person for violation of the rules. The reason being the rules were carved out subsequently with retrospective effect, therefore, penal provisions was not to be enforced. Furthermore, there is no suppression of facts and the assessee being a PSU Unit, was not to gain anything in the matter. The Tribunal, in the case of Tube Investments of India Ltd., has also granted the benefit of time-bar. The prayer for setting aside the penalty and interest is acceptable in view of the explanation carved out in Section 82 of the Finance Act and in terms of judgment rendered in the cases of Chandrapur Magnets and Tubes Investments of India Ltd. The appellants have already reversed the 8% amount and hence, penalty and interest is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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