9911796707
TMI Blog2016 (12) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... roper, then he should allow the cenvat benefit and drop the duty demand. The submissions of the appellant that cylinder valves were procured during the period 2007-2008 on which cenvat credit has not been taken, is not appreciated at this juncture for the reason that no documents were produced to show that the valves cleared during the disputed period were procured prior to 2007-2008 and no Modvat/ Cenvat credit has been taken by the appellant. Since interest is compensatory in character, and in view of the fact that there is no loss of Revenue, I am of the opinion that confirmation of interest of ₹ 2,26,704/- and penalty of ₹ 500/- is not proper and justified. Thus, appeal filed against such demand is allowed and the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty was also imposed on the appellant. The reasons assigned for confirmation of demand are as under:- (i) Non-reversal Cenvat credit on cylinder valves (Rs.1,37,378/-) (ii) Non-reversal of cenvat credit on scrap and discarded capital goods at the time of closure of the factory (Rs.4,25,704/-) (iii) Delayed reversal of cenvat credit (Rs.2,20,704/-) (iv) Cenvat credit passed on to the customers under invoices issued in the capacity of the first stage dealer (Rs.50,207/-) 3. With regard to removal of cylinder valves, the appellant s submissions are that the same were procured in the year 2007-2008 and no cenvat credit has been taken, thus, the question of reversal of credit at the time of removal on those un-manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvat/ Cenvat credit has been taken by the appellant. Therefore, I do not find any merits in the appeal and upheld the cenvat demand of ₹ 1,37,378/- confirmed against the appellant along with applicable rate of interest and the penalty confirmed in the adjudication order. 7. With regard to clearance of scrap and discarded capital goods, the submission of the Ld. Consultant is that the original capital goods were procured during the period 1993/1994 on which no Modvat/ cenvat credit had been availed by the appellant. To support her stand, the Ld. Consultant has produced the bill of entry/ invoices before the Tribunal. I find that the additional documents produced before the Tribunal was not produced before the authorities below. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cenvatable invoices issued under the dealer registration certification. Thus, cenvat demand of ₹ 50,207/- and the imposition of penalty of equal amount is not sustainable. 10. In view of the foregoing, the appeals are disposed of in following terms: (a) Cenvat demand of ₹ 1,37,378/- is upheld along with interest and penalty confirmed in the impugned order. (b) Matter is remanded to the original authority for verification of the duty paid documents for ascertainment of facts regarding availment of Modvat/Cenvat on the initially procured capital goods, which were removed as waste and scrap from the factory. (c) Appeal is allowed with regard to confirmation of interest amount of ₹ 2,26,704/- with penalty of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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