2018 (3) TMI 750

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..... the appellant therefore whatever duty is paid or payable by their HInjewadi unit was available as Cenvat credit to the appellant therefore due to this revenue neutrality intention to evade excise duty is not established. The settlement commissioner has taken very lenient view on imposing penalty which further proves that there is no malafide intention to evade payment of duty. Appeal allowed - decided in favor of appellant.
MR. Shri Ramesh Nair, Member (Judicial) Shri S. Narayanan, Advocate for Appellant Shri Deepak S. Chavan, Supdt. (A.R) for respondent This appeal is directed against Order-in-appeal passed by the Commissioner (Appeals), whereby appeal of the Revenue was allowed against Order-in-Original. The adjudicating authority d .....

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..... t Hinjewadi unit against show cause notice for differential duty demand of ₹ 75,62,961/- which includes the present amount also approached settlement commission and got case settled therefore there is no suppression of facts established in case of appellants Hinjewadi unit. He submits that lower authority have contended that since settlement commission has imposed penalty therefore there is suppression of facts. He submits that as against demand of ₹ 75.62 lakhs, token penalty of ₹ 1.5 lakhs was imposed this itself shows that penalty is only towards procedural laps and not for intention to evade payment of duty. In support of his submission he placed reliance on the following judgments: (a) Mahindra & Mahindra Ltd vs. C .....

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..... llant. In this fact, I find that this is not the case of clandestine removal with intent to evade payment of duty. Appellants Hinjewadi unit cleared the goods on payment of duty, short payment is only due to the wrong calculation of costing. This does not mean that appellants Hinjewadi unit intentionally suppressed the value to evade duty. It is also observed that both the unit belong the same company of the appellant therefore whatever duty is paid or payable by their HInjewadi unit was available as Cenvat credit to the appellant therefore due to this revenue neutrality intention to evade excise duty is not established. It is also observed that settlement commission in the case of Hinjewadi unit settled the case involving total duty of 7 .....

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