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TMI Blog2018 (5) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for which Central Excise duty needs to be discharged - It is settled position, of ineligible CENVAT credit, if any, is reversed of there is discharge of duty liability on the goods which were presumably not manufactured in the factory premises, accordingly there is no need to confirm the demands. The demands raised along with interest and also the penalty imposed on RRL set aside - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... g Director. Revenue is in appeal against the said order on the ground that the Adjudicating Authority has not imposed equivalent amount of penalty on RRL. 4. Heard both sides and perused the records. 5. Learned Consultant appearing for RRL and the Managing Director submits that the CENVAT credit availed on the bricks purchase from SRPL and delivered to RINL (earlier VSP) is already reversed by way of payment of duty on the invoices prepared by RRL. He submits that they had to take recourse to such an action due to some industrial problems in factory premises of RRL. It is his submission that there is no requirement under the law to receive inputs in the factory, as has been decided by the Supreme Court in the case of Jaypee Rewa Cement [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the amount of CENVAT credit availed by the appellant of the duty paid on the refractory bricks which were procured by RRL from SRPL, were delivered to RINL (VSP), on the invoices raised by the appellant RRL, which indicated discharge of duty. In short, even assuming that the appellant has availed ineligible CENVAT credit, they have paid back the same to the Government of India by discharging the duty liability on the bricks which were delivered to RINL (VSP). Admittedly, the transaction was back to back and there was no manufacturing activity of the bricks in RRL is factory for which Central Excise duty needs to be discharged. It is settled position, of ineligible CENVAT credit, if any, is reversed of there is discharge of duty liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit had been availed. 7. Insofar as invocation of the provisions of Section 11AC of the Act and Rule 25 of the Rules is concerned, in the entire order of the adjudicating authority there is no finding to the effect that there is any fraud, misrepresentation or suppression of facts or that there is contravention of the provisions of the Act or Rules with intent to evade payment of duty on the part of the assessee. Rule 25 of the Rules provides for levy of penalty in case of any contravention of the nature referred to in clauses (a) to (d) therein. Rule 25 opens with the words, "subject to the provisions of Section 11AC of the Act". Thus, for the purpose of invoking the said Rule, the requirements of Section 11AC of the Act are required to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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