9911796707
TMI Blog2010 (6) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... s classifiable under Chapter sub-heading 8414.80 and 8414.90 respectively of the first Schedule to the Central Excise Tariff Act, 1985. They had been availing Cenvat credit on the inputs and capital goods in terms of the provisions of Cenvat Credit Rules, 2002. 4. The investigation discloses that for the period March 2002 to July 2003, the appellants had availed the Cenvat credit, as above, without maintaining separate accounts for the receipt, consumption and inventory of the inputs meant for the use in the manufacture of dutiable final products and those inputs used in the manufacture of exempted goods and thereby had contravened the provisions of Cenvat Credit Rules, 2002. Consequently, show cause notices came to be issued to the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y collusion or suppression of facts which would justify the imposition of penalty. The impugned orders also do not disclose contravention of the provisions of the Central Excise Act, 1944 or the said Rules with intent to evade the payment of duty. In such circumstances, according to the learned advocate, there was no case for imposition of penalty. 7. The learned DR, on the other hand, referring to the assessment of materials on record made by the authorities below, submitted that there is no case for interference in the impugned orders. 8. Perusal of the impugned orders, apparently, disclose that the demand @ 8% of the price of the goods cleared during the relevant period was made and has been confirmed solely on the ground that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of facts on the part of the appellants in utilizing the credit without complying with the requirement of Rule 6(2) of the said Rules. The impugned order also does not disclose any finding about the intention on the part of the appellants to evade the payment of duty in not complying with the requirement of law. Being so, the appellants are justified that in the absence of any finding on any of the above mentioned aspects, the authorities could not have imposed the penalty. 10. In the result, therefore, the appeals partly succeed as far as it relate to the imposition of penalty is concerned. Hence, the appeals are partly allowed and the impugned orders to the extent of imposition of penalty is concerned are hereby quashed and set aside. No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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