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TMI Blog2019 (5) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequent removal is assailed in this appeal. 2. Factual backdrop of the case is that Appellant had cleared 18 packing and levelling Machines during the period from February, 2011 to December, 2011 on which Appellant had availed CENVAT credit before introduction of compounded levy scheme on 27-02-2010. During audit, being pointed out by the audit Officer, Appellant had paid duty of Rs. 18367 on transaction value on 28-2-2014 after declaring those unused machines are scrap and waste in terms of Rule 5A of the CENVAT credit Rules. It was put to show cause notice with duty demand interest and penalty as referred above on the ground that such reversal of CENVAT credit was supposed to be made under the second proviso to Rule 3(5) @ 2.5% for ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 report in 2013(290) E.L.T. 322(Guj) judgments are made to justify non-invocation of such extended period. 4. Learned AR for the Respondent department Shri Sanjay Hasija, supported the reasoning and rationality of the order passed by the Commissioner of Appeal and with reference to decision reported in 2003(162)ELT 353(Tri-Del) the case of Commissioner if C-Ex. Jaipur-1, 2015(320) ELT 634(Tri-Mum) in the case of Unique Processors Vs Commissioner of Central Excise, Thane-1, to substantiate that packing machine being removed from the factory, he agreed that duty is payable against CENVAT credit which is supposed to be reversed upon such removal. In producing Notification 18/2012-CE (ND) dt. 17t March 2012, had clarified that when the capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concern now coming to the statutory audit procedure, the purpose of audit, as available in the Manual published by the Institute of Chartered Accountants of India in respect of EA audit and CERA audit under Chapter 17 is that the idea behind such conduct of verification is to reasonably ensure that no amount, which under the central excise law is chargeable as duty, escapes taxation and the process of verification is always carried out in the presence of assesse and in the process, the auditor is required to discuss the matter with the assesse and advice him to follow correct procedure in future. It is also referred in the said manual that after such submission of audit report, in cases where the disputed amount have not already been paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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