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TMI Blog2016 (5) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... convenience of the assesse will be considered as a violation of the procedure prescribed under Rule 57J of the Central Excise Rules, 1944. In the present case, all the consignments manufactured by the job worker were returned by the appellant for further processing within the prescribed time. After weighing all the evidences, bench is of the considered opinion that penalty upon the appellant is imposable under Rule 173Q (1) (bb) of the Central Excise Rules, 1944. However, appellant has only gained in taking Cenvat Credit for a few months because all the consignments have been received by the appellant for further processing within the prescribed time limit. Therefore, a penalty of ₹ 10,000/- upon the appellant will meet the ends o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit. Therefore, no penalty can be imposed upon the appellant under the provisions of Rule 57I (4) of Central Excise Rules, 1944. Ld. Advocate also relied upon the following case laws to argue that the penalty in the present case cannot be imposed under Rule 57I (4) of Central Excise Rules, 1944 as there was no intention to evade Central Excise duty: i) Ashok Leyland Vs. Commr. of Central Excise, Chennai-2008 (232) ELT 111 (Tri.-Chennai) ii) Commr. of C. Ex., Ludhiana Vs.-Steel Strips Ltd. -2008 (221) ELT 193 (P H) iii) A.R.A.S. Motors (P) Ltd. -Comm. Of Central Excise, Madurai-2014 (33) STR 408 (Tri.-Chennai) 3. Shri J. Bose, A.C. (A.R.) appearing on behalf of the Revenue made the Bench go through internal page 5 of Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... volved in this appeal is whether penalty under Rule 173Q (1) (bb) of the Central Excise Rules, 1944 is imposable upon the appellant for takin credit on inputs as soon as duty paying documents were received. It is observed from the case records that as per the procedure prescribed by the Department, as discussed by the adjudicating authority on page 5 of the Order-in-Original dated 29/1/2010, credit with respect to inputs can be taken only on receipt of the finished products/intermediate goods from the job workers, when the inputs purchased by the appellant is directly sent to the job worker without receiving the same in the factory. A violation of a procedure prescribed for the convenience of the assesse will be considered as a violation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper and true account of the receipt and disposal of the said inputs or capital goods and the credit of duty or money taken thereon as required under these rules, or contravenes any of the provisions contained in Section AA or AAA or AAAA of Chapter V of these rules; or (bbb) --------------------- (c) ----------------- (d) contravenes any of the provisions of these rules with intent to evade payment of duty, Then, all such goods shall be liable to confiscation and the manufacturer, producer, registered person of a warehouse or a registered dealer, as the case may be, shall be liable to a penalty not exceeding three times the value of the excisable goods in respect of which any contravention of the nature referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect to inputs could be taken only on receipt of the inter mediate products/finished goods from the job worker. However, it is also observed from the findings of the adjudicating authority that all the consignments manufactured by the job worker were returned by the appellant for further processing within the prescribed time. After weighing all the evidences available on record, bench is of the considered opinion that penalty upon the appellant is imposable under Rule 173Q (1) (bb) of the Central Excise Rules, 1944. However, appellant has only gained in taking Cenvat Credit for a few months because all the consignments have been received by the appellant for further processing within the prescribed time limit. Therefore, a penalty of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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