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TMI Blog2019 (2) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower authority confirming the demand and the First Appellate Authority upholding the demand along with interest and penalties. However, the appellant now submits that they have documents to show that they have subsequently used the written off material. This requires a detailed examination of the documents and re-calculation of the amount of credit to be reversed and interest as well as the penalties - appeal allowed by way of remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Act. It was also proposed to charge interest on duty demanded from them under Section 11AA of Central Excise Act, read with Rule 14(1)(ii) of CCR, 2004. Further, it was proposed to imposed penalty in terms of Rule 15(2) of CCR, 2004 read with Section 11AC. 3. After following due process of law, the lower authority confirmed the demand along with interest and imposed penalties. Aggrieved, the appellant appealed before the First Appellate Authority who upheld the Order-in-Original recording his findings as follows: "12. It is therefore clear that the demand set aside by the Hon'ble High Court in that case is open for the department for demand of reversal of Cenvat credit in the current circumstances. The relevant Rule 3(5B) of the CENVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned order at para No. 17 and they can take credit as and when they reuse the goods for manufacture further. 13. The appellant also submitted in the grounds of appeal that the goods were put into use for further manufacture for the manufacture and production of the empty glass bottles. They claim that the entitlement of the credit on subsequent use of the inputs makes the demand revenue neutral. They have cited cases in their support. From a perusal of the records, it is observed that the appellant apart from submitting before the Adjudicating Authority and before me in their grounds of appeal, have not provided conclusive proof that they had utilised the inputs under consideration for further use in the manufacture as claimed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as per accounting standard. It is also true that they have not reversed the CENVAT credit under Section 3(5B). However, subsequent to taking credit, they have used some of the inputs/capital goods which were originally written off and produce a few of such examples. She fairly submits that they had not produced any evidence before the First Appellate Authority at the time of hearing which resulted in rejection of their claim and upholding of the Order-in-Original. She submits that they had failed to provide the evidence to substantiate the claim at the time of adjudication but can now prove so and prays that the matter may be remanded to the original authority for verification. 5. Learned Departmental Representative submits that this wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmity in the lower authority confirming the demand and the First Appellate Authority upholding the demand along with interest and penalties. However, the appellant now submits that they have documents to show that they have subsequently used the written off material. This requires a detailed examination of the documents and re-calculation of the amount of credit to be reversed and interest as well as the penalties. Even in cases, where the appellant was required to have debited the amount initially but which they have used subsequently the interest element for the interim period is liable to be recovered. The Adjudicating Authority must be given an opportunity to examine the documents now presented by the appellant and any other evidence w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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