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TMI Blog2018 (4) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... shifted to the new factory clearly shows that the goods on which credit has been availed are used capital goods and they have been removed from one location to another location on payment of duty and thereafter cenvat credit was taken - appellant has also proved that he has availed the credit but the same has not been used as sufficient balance was there in their cenvat credit account and therefore there is no question of demanding interest and imposing penalty Extended period of limitation - Held that: - invoking the extended period is not justified in the present case because there was no intention to evade payment of duty, Appeal allowed - decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,67,873/- (Rupees Seven Lakhs Sixty Seven Thousand Eight Hundred and Seventy Three only) along with interest of ₹ 41,868/-(Rupees Forty One Thousand Eight Hundred and Sixty Eight only), Besides this equal penalty was imposed under Section 11AC and also appropriated the already reversed credit of ₹ 6,67,873/-(Rupees Seven Lakhs Sixty Seven Thousand Eight Hundred and Seventy Three only), Aggrieved by the said order, appellant filed appeal before the Commissioner who rejected the appeal. Hence the present appeal, 2. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same is passed contrary to the provisions of the law and also contrary to the binding judicial precedent. He furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se or transfer of factory to a joint venture with the specific provision for transfer of liabilities of such factory, then the manufacturer shall be allowed to transfer the cenvat credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory, (b) The stock of inputs as such or in process or the capital goods is also transferred along with the factory or business premises to the new site or ownership, 2.1. He further submitted that in the present case the appellant's factory was shifted to new location and therefore they are eligible to transfer the cenvat credit on capital goods to their new factory without any permission from authorities in view of the provisions of Rule 10 of Cenvat Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore invocation of extended period is not justified, In support of this submission, he relied upon the following decisions: a) Cosmic Dye Chemicals vs, CCE., 1995 (58) E.CR. 232 (SC) b) Tami/ Nadu Housing Board Vs. Collector of Central Excise, Madras reported in 1994 (55) E, C.R. 7 c) Collector of Central Excise Vs, Chemphar Drugs. & Liniments reported in 1989 (21) E, CR. 182 3. On the other hand the learned AR reiterated the findings of the impugned order. 4. After considering the submissions of both the parties and perusal of the material on record/ I find that in the present case Rule 3(6) is applicable and not Rule 4(2). Further I find that the provisions of Rule 3 (6) provides for removal of used capital goods on reversal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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