9911796707
TMI Blog2017 (2) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... normal period - appeal allowed - decided partly in favor of appellant. - E/21848/2015 - A/30057/2017 - Dated:- 6-1-2017 - Ms. Sulekha Beevi, C.S., Member(Judicial) Shri. N. V. Ramana Rao, Advocate for the Appellant. Shri. P.S. Reddy, Assistant Commissioner (AR) for the Respondent [Order per: Sulekha Beevi, C.S.] The appellants are engaged in manufacture of Veneers and Plywood and are registered with the Central Excise Department. The appellants imported logs which are inputs for their final products by paying appropriate customs duty. The timber logs used as inputs for final products were also cleared as such by the appellants. The appellants availed CENVAT credit on duty paid on the timber logs. On verification of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued by the Counsel that appellant did not reverse the credit, and it was only due to mistake. As the amount was not reversed, the appellant could not show the reversal in the ER-1 returns. He argued that mere omission to declare is not willful suppression and therefore, the demand invoking the extended period is not sustainable. It was also argued by the Counsel that the authorities below ought to have seem that appellant had paid the amount for the normal period immediately on being pointed out by the Department and even prior to the issuance of Show Cause Notice, therefore, no penalty could be imposed. 3. Against this the Ld. AR, Shri. P.S. Reddy reiterated the findings in the impugned order. He submitted that the appellant having n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit when the inputs were removed as such, I find that the Show Cause Notice issued invoking extended period of time is proper. Taking into consideration the amount paid by the appellant immediately on being pointed out by department. I hold that the penalty of equal amount is unjustified and requires to be revised to the period beyond the normal period. The appellant is liable to pay penalty only to the proportionate amount for the extended period. The appellant had already paid ₹ 1,10,504/- for the normal period, on being pointed out and therefore penalty equal to this amount cannot be sustained. The impugned order is modified to the extent of setting aside the equal penalty and stands modified to the amount of duty pertaining to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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