9911796707
TMI Blog2008 (10) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... ing for the Appellants states that the Appellants obtained several inputs from a public sector company and physically mixed them to produce Thinners from the year, 2002-2003 onwards. Initially, the Appellants were under the impression that since no manufacture is involved in producing the Thinners , the same is not excisable and therefore, the Appellants did not apply for Excise Registration, though they applied for registration as a Small-Scale Industrial Unit and also took both Sales Tax and Income Tax Registrations. He states that the Appellants have maintained the necessary books of accounts as well as the invoices under which the inputs were obtained. He further states that on 9-9-05 the Appellants, on their own, applied for Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55,18,539.00 - 34,42,966.00 Nil. 2003-04 1.09,60,000.00 1,00,00,000.00 9.6% 9,60,000.00 N.A. 1,81,20,100.00 1,56,20,676.00 16% 24,99,324.00 N.A. TOTAL-II 2,90,80,100.00 2,56,20,776.00 - 34,59,324.00 Nil. 2004-05 1,09,60,000.00 1,00,00,000.00 9.6% 9,60,000.00 9,600.00 3,61,22,620.00 3,11,40,190.00 16% 49,82,430.00 49,824.00 TOTAL-III 4,70,82,620.00 4,11,40,190.00 59,42,430.00 59,424.00 2005-06 TOTAL-IV 2,60,82,432.00 2,24,84,855.00 16% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equal penalty imposed on them. He also states that the Appellants cannot be allowed Input Duty Credit at a later point of time having not taken the same earlier. 5. After considering the submissions from both sides, we find that since the Appellants do not have a net duty-liability even for the period after 9-9-05 when they have taken the Excise Registration, the explanation put forth by them that they had no mala fide motive in not reporting production and clearance earlier appears to be bona fide and plausible. Their submission in this regard is further strengthened by the fact that there is no duty demand for the period after 9-9-05, which goes to show that after allowing the small-scale exemption, which we find, has not been denied b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be necessary to take a liberal view in their case and allow them the small-scale exemption, computation on the basis of cum-duty price and set-off against the CENVAT Credit on the invoices issued by public sector suppliers subject to being available for verification. Accordingly, we set aside the impugned Order and remand the matter to the Original Authority for verifying the invoices to be produced by the Appellants before him and for allowing the Credit in respect of the same while computing the new duty demand, if any. The Appellants shall not be liable for any penalty for evasion of duty if the net duty demand is nil. However, the Adjudicating Authority shall be free to determine the penalty for other violations of laws. The Appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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