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TMI Blog2011 (4) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble Supreme Court held that the appellant became liable to pay duty under the circumstances which warrant application of the provision of Section 11A(1) - Decided against the assessee. - E/1534/10 - - - Dated:- 15-4-2011 - Hon ble Dr. P. Babu, Member (Technical) Appellant : Shri N.K. Oza, Adv Respondent : Shri R. Nagar, SDR Per: Dr. P. Babu: M/s. Pop-Flon Engineering Co. Pvt. Ltd., Ahmedabad, the appellant, are engaged in the manufacture of Teflon Lined Equipments. It was found that on a visit to their factory they have crossed the exemption limit of Rs.1 crore in terms of Notification No.8/2003-CE dated 01.03.03. They also had availed transitional credit on inputs lying in stock after which was intimated to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r finding as follows: The fact remains that certain inputs have been found short and for which the cenvat credit needs to be reversed. I confirm the reversal of this amount but for the simple reason that the inputs have been found short. If there are no inputs, there is no cenvat credit available to the appellant. 3. Further more, I find that as per the statement of Shri Ashok Gandhi dated 15.04.06 regarding the shortage of raw materials namely PFA and FEP as per panchnama dated 25.01.06, he stated that the raw materials viz.PFA 118.305 Kgs. valued at Rs.1,77,144/- and FEP powder 654.996 Kgs. valued at Rs.6,36,580/- found short were actually cleared to different buyers from their factory gate without payment of any central excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt; The Hon ble High Court of Punjab Haryana vide order dated 25.07.06 in C.E.A. 13 of 2005 held that a perusal of provision of Section 11AC shows that the said provision incorporates liability to pay penalty in the situation mentioned therein. Once a case is covered by the situation mentioned in the Section, mere deposit prior to issuance of show cause notice under Section 11A of the Act will not necessarily negate the situation mentioned in the said Section. The applicability of Section 11AC is not excluded at the threshold merely on deposit of the amount after having caught and before the issue of the show cause notice. Question will remain whether situation mentioned in the Section 11AC exits, which has to be determined irrespecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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