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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 ..... relation to notified goods, which in the present case means manufacturing tobacco, it cannot be said that without an express provision, whatever credit was availed for old and unused machines are to be refunded by applying provision of CENVAT credit rules 2004. Audit - suppression of facts or not - HELD THAT:- EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of receipt and expenditure of the Government of India. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by CERA audit party to point out the deficiencies, leakage of revenue and non recoveries of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 each quarter on used capital goods. Appellant un-successfully challenged it up to the level of Commissioner (Appeals). 3. In the Memo of Appeal and during course of hearing of appeal, Counsel for the Appellant Mr. Prashant Patanker submitted that provision of CENVAT credit Rule 2004 is not applicable to unit operating under compounded levy scheme and the expression in relation to notified goods is wide enough to cover capital goods used for manufacturing of notified goods as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hane-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 capital goods are removed as scrap or waste, the manufacturer shall pay an amount equal to the CENVAT credit taken on the said capital goods reduced by the percentage points i.e. @ 2.5% for each quarter for which the order passed by Commissioner (Appeal) needs no interference. 5. Heard from both the sides and perused the case as well as relevant provisions and rules on the issue. A bare perusal of Rule 16, sub Rule 1 7 would make it clear that no CENVAT cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 by the assessee at the spot, demand notices are issued by the department for their recoveries. EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of receipt and expenditure of the Government of India. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by CERA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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