9911796707
TMI Blog2018 (10) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- The effective Show Cause Notice will be the date of corrigendum dated 23/01/2007 as the proposed demand in SCN is increased substantially above 25% - the show cause and the corrigendum is for the sake of change of opinion only, based on the cost of production taken by Revenue - the Show Cause Notice is not sustainable for invoking the extended period of limitation, only for the sake of change of opinion and the situation being wholly revenue neutral. Appeal allowed - decided in favor of appellant. - APPEAL No. E/2148-2150/2008-EX[DB] - A/72233-72235/2018-EX[DB] - Dated:- 30-5-2018 - Mr. Anil Choudhary, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri A. K. Prasad, Advocate, for Appellant Shri Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anding duty of ₹ 41,12,455/-. Subsequently, a corrigendum to the show cause notice was issued on 23/01/2007 enhancing the duty demand to ₹ 50,39,219/-. 5. During the course of adjudication, in the first round of litigation, the appellant sought some relied upon documents which were supplied very late. Despite seeking adjournment, the show cause notice was decided ex-parte. On appeal, this Tribunal remanded the matter to the Commissioner for de-novo decision. 6. In the second round of litigation, the ld. Counsel for the appellant raised a number of points or grounds. However, none of the points were considered and, vide Order-in-Original dated 25/07/2008, the full demand of duty was once again confirmed, along with equivale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction method i.e. at 110% of the cost of production (as per CAS-4). This clearly shows that prior to this amendment, Rule 8 could not be invoked in such a situation as that of the appellant company. 7.3 The whole exercise is revenue neutral. Whatever differential duty is payable by the appellant company at their Muzaffarnagar Unit, would be available as Modvat/Cenvat credit to their Faridabad Unit. Hence, the demand itself is not sustainable. 7.4 The Courts have consistently held that in a revenue neutral situation, neither can any penalty be imposed on an assessee nor can the extended period be invoked. 7.5 Since the alleged corrigendum dated 23/01/2007 made significant changes to the original show cause noticed dated 05/08/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, who has supported the impugned order and have further stated that for the purpose of determination of limitation, wholly revenue neutral situation is irrelevant nor the date of corrigendum. 9. Having considered the rival contentions and on appreciating the facts, we find that the appellant Muzaffarnagar unit is clearing the 95% of its production to their Faridabad unit which manufactures, further taxable goods which are cleared on the payment of appropriate duty. Thus, under the facts and circumstances, whatever Excise duty is paid by the Muzaffarnagar unit, the same shall be available as Cenvat Credit at the Faridabad unit. Thus, making the situation wholly revenue neutral. Further, we hold that the effective Show Cause Notice will ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
