9911796707
TMI Blog2004 (8) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be used when there was no time limit for consumption. In this connection, I respectfully follow the judgment rendered by the Bangalore Bench in the matter of Bharat Heavy Electricals Ltd.[ 2002 (2) TMI 1322 - CESTAT BANGALORE] . I do not find any evidence whatsoever that there was suppression of facts and therefore, I have no hesitation in concluding that no penalty can be imposed u/s 11AC and no interest can be demanded u/s 11AB ibid. I, therefore, respectfully following the above said judgments of this Tribunal, allow their appeal and set aside the impugned order demanding penalty u/s 11AC and demanding interest u/s 11AB. - Shri Jeet Ram Kait, Member (T) [Order]. - This appeal is directed against the Order-in-Appeal bearing No. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solete and could not be utilized and became unusable for the intended industrial purpose. Their value was also written down in the balance sheet in July 2000. They had applied for remission of duty on these obsolete components but no action was taken by the jurisdictional Commissioner on this application which was submitted to the jurisdictional Commissioner under Rule 196B read with Rule 173P of the Central Excise Rules. On 2-10-2001 after waiting for a period of more than one year, they disposed of their components which were received under Chapter X procedure and paid duty under protest. In this connection, learned Counsel also invited my attention to the findings of the original authority at internal page 7 (unnumbered Para 3) wherein t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso (1) to section 11A of the Central Excise Act, 1944. He also invited my attention to the judgment of the Bangalore Bench of this Tribunal reported in 2002 (50) RLT 208 (CEGAT - Bangalore) in the matter of Bharat Heavy Electricals Ltd. v. C.C.E, Bangalore wherein it was held that if the inputs are still lying in the factory even though they have been written off in the books of account, the Modvat credit cannot be denied on the presumption that inputs would be used when there was no time limit for such consumption. 3. Heard the learned JDR, Shri M.H. Shaikh who has heavily relied on the findings by the Additional Commissioner of Central Excise, Nasik the original authority, and submitted that the assessee had discontinued production o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of 'MAN' diesel engine during 1994. In view of this position, the judgment rendered by the Northern Bench, Delhi in the matter of Hindalco Industries Ltd. (supra) is fully applicable as this demand has been raised on the basis of information appearing in the balance sheet. In this connection, I respectfully follow this judgment by the Northern Bench, Delhi in the case of Hindalco Industries Ltd. (supra). And since the balance sheet of the company being publicly available document, the allegation of suppression of such information is not sustainable. Therefore, extended period cannot be invoked under proviso to Section 11A(1) of the Act ibid. In my considered opinion, the provisions of Section 11AC for imposition of penalty and the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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