9911796707
TMI Blog2013 (1) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... they have not done and such a mistake cannot be accepted as a clerical error and the appellants' submissions in this regard are rejected. Since they have availed such credit despite knowing that the value of such accessories is not included in the assessable value of the final products and nor these accessories/inputs are capital goods for such product, the intention to wrongly avail CENVAT Credit is quite obvious and consequently they are liable for penal action under Rule 15 of the Cenvat Credit Rules read with Section 11AC. As the appellants have cleared the input to their sister unit without raising any invoices for such clearance and have neither paid the duty nor reversed the CENVAT Credit, appellants have clearly violated the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Tariff Act, 1985. The appellants availed CENVAT Credit on inputs, capital goods and input services under the provisions of Cenvat Credit Rules, 2004. On the basis of information that the appellants were evading payment of Central Excise duty, investigations were carried out and on investigation the following issues came to notice:- (i) Wrong availment of CENVAT Credit on certain optional accessories which were not inputs but cleared along with the final products and the value of which was not part of the transaction value. (ii) The failure to determine the correct value of the goods cleared to their sister unit as per provisions of Rule 8 and Rule 9 of the Central Excise Valuation Rules leading to short payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirmed the penalty for issue No. (i) (iv) mentioned in para 2 above. The appellants have challenged the impugned orders in these appeals. 3. The learned Advocate appearing for the appellants submitted that the excise duty and interest have already been paid in respect of all four issues, but the Commissioner (Appeals) has not accepted their submissions in respect of the two issues. Therefore, they are in appeal before the Tribunal. He submitted that non-reversal of CENVAT Credit in respect of optional accessories were purely a clerical error on the part of their staff and credit was reversed immediately after the Audit Party pointed out and there was no intention to evade payment of duty on account of fraud and suppression. He th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of show-cause notice, no notice is required to do so to the assessee. 4. Learned Dy. Commissioner (A.R.) appeared for the Revenue reiterated the findings of the lower authorities and submitted that the appellants were well aware that they were not paying duty on clearance of optional accessories and the same were optional bought out items. They have intentionally availed the CENVAT Credit although they were well aware that the value of said accessories was not included in the assessable value of the final products. As regards the clearance of the input as such, he submitted that the appellants have cleared such inputs to the sister unit without raising any invoices for such clearances and the appellants were not new to the procedure of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the intention to wrongly avail CENVAT Credit is quite obvious and consequently they are liable for penal action under Rule 15 of the Cenvat Credit Rules read with Section 11AC of the Act. Accordingly, we confirm the Commissioner (Appeals) finding regarding the confirmation of penalty on this issue. 7. As regards the issue of clearance of inputs as such to their sister unit, we find that the appellants have cleared the input as such without raising any invoices for such clearance and they have neither paid the duty nor reversed the CENVAT Credit. If the said issue was not noticed by the Revenue, the appellants would have continued to clear the inputs to their sister unit without payment of duty. Therefore, the appellants have clearly vio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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