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TMI Blog2018 (6) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... rance of kraft paper to Unit-II was available as Cenvat credit to Unit-II. In these circumstances there cannot be any intention to evade payment of duty and the situation is completely revenue neutral - the present case is squarely covered by the decision of Division Bench in the case of Hindustan Zinc Ltd. [2008 (7) TMI 214 - CESTAT NEW DELHI], where it was held that the entire excise is revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 2,57,970/- under Section 11AC of Central Excise Act, 1944. 2. The brief facts of the case are that the appellant is engaged in manufacture of Brown Kraft Paper falling under Chapter 48 of the First Schedule of the Central Excise Tariff Act, 1985 and is registered with the department. The show cause notice dated 07/05/2010 issued to appellant reveals that during checking of appellant s unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant did not contest demand of duty as they had already paid the same. The Learned Commissioner (Appeals) was pleased to set aside penalty under Rule, 25 but upheld the penalty under Section 11AC. 4. The learned counsel appearing for the appellant submitted that both the units were registered and had been paying Central Excise duty; both the units had been availing Cenvat credit; that the Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise and had been paying central excise on clearance of their final products. Duty payable by Unit-I on clearance of kraft paper to Unit-II was available as Cenvat credit to Unit-II. In these circumstances there cannot be any intention to evade payment of duty and the situation is completely revenue neutral. I also note that the present case is squarely covered by the decision of Division B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was available as credit to them and nothing would go into the Revenue s pocket. The entire excise is revenue neutral as neither the assessee stands to loose anything by paying higher duty nor the Revenue stands to gain anything by the appellant s adoption of lower assessable value. As such, we are of the view that demand is unwarranted and unsustainable on this count alone. We, accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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