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TMI Blog2023 (4) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... 5)15-69/Adj/Commr/16-17 dated 28.04.2016: (i) Cenvat credit of Rs. 5,98,09,007/- (Rs Five Crore Ninety Eight Lakh Nine Thousand Seven only short reversed by LG Electronics India Pvt. Ltd, under Rule 6(3A) of the Cenvat Credit Rules, 2004 for the period 2011-12 to 2014-15, as shown in Annexure-A to the Show Cause Notice is liable to recovered under Rule 14 of the Cenvat Credit Rules, 2004 read with proviso to Section 114(1)/ 11A(4) of the Central Excise Act 1944. I accordingly order for its recovery. (ii) The demand for recovery of Cenvat credit for Rs. 14,12,936/- is dropped as the same is held at admissible. (iii) In the Statement of Demand F No V84885)15-72/Adj/ADC/16-17 dated 06.05.2016 (i) Cenvat credit of Rs. 28,63,794/- (Rs Twen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual culpability of company officials against the roles played by them in the case. and as discussed in the "Findings (Para 19)" above, I hold that penalty is liable to be imposed on Shri Rajhkumar Jain, GM-Finance & Taxation, LG Electronics India Pvt. Ltd. i.e Noticee No 2 and Ajay Jain, Manager (Commercial & Excise), LG Electronics India Pvt. Ltd i.e Noticee No.3 under the provisions of Rule 15(1) of the Cenvat Credit Rules, 2004 read with Rule 26(1) of the Central Excise Rules, 2002. Accordingly, (i) I impose Personal Penalty of Rs 5,98,000/- (Rupees Five Lakh and Ninety Eight Thousand only) on Shri Rajhkumar Jain, GM-Finance & Taxation, LG. Electronics India Pvt, in SCN F.No. F.No. V (84885)15- 69/Adj/Commr/16-17 dated 28.04.2016 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured goods from their respective location after payment of excise duty determined under section 4A of the Act. From the factory location, both dutiable and exempted goods, are transferred to the Central depot and stored together and the goods are transferred to the regional depot based on the requirements and demands. 2.4 Till the goods are stored in Central Depot, the Appellants is able to identify and differentiate dutiable and exempted goods. Accordingly, the appellant avails full CENVAT credit which are directly attributable to exempted goods. So far as Common Cenvat Credit is concerned, the appellant proportionately reverses the CENVAT credit attributable to exempted goods. 2.5 For the purpose of reversal of common Cenvat cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the following decisions o Aavantika Gas Ltd. [2023 (1) TMI 5050-CESTAT New Delhi]. o JWC Logistics Park Pvt. Ltd. [2022 (5) TMI 430-CESTAT Mumbai]. o National Steel & Agro Industries Limited [2021 (6) TMI 60- CESTAT New Delhi]. o E-Connect Solutions (P) Ltd. CCE&CGST 2020 (11) TMI 282- CESTAT New Delhi. o Deepak Fertilizers and Petrochemicals Corporation Ltd. [2020 (7) TMI 486-CESTAT Mumbai]. o Reliance Industries Ltd. [2020 (9) TMI 787-CESTAT Mumbai]. o Honda Cars India Ltd. [2020 (3) TMI 523-CESTAT Chennai]. o Lotte India Corporation Ltd. [2020 (3) TMI 307-CESTAT Chennai]. ⮚ Services were used for the Central depot and the reversal is made by the ISD unit and not by the appellant. After making such a revers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not apply to the input service distributor." 4.5 The contention of the department that in terms of the Rule 7 (g) the reversal as per Rule 6 is to be made by the units manufacturing goods or provider of output service is academic in nature in cases where the reversal has been made by the ISD, and there is no revenue loss to the government exchequer. During the period in dispute, the Appellant reversed an amount of Rs. 19,03,11,045/- at the ISD level before the distribution of the credit. However, if the allegation of the department is accepted and the Appellant is required to make reversal at the manufacturing unit level, the Appellant would have made the reversal of Rs. 4,78,15,154/- and the Noida unit would have reversed Rs. 11,06,86,024 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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