2010 (7) TMI 371 - AT - Central Excise

Penalty cenvat credit Purchase and sale of machinery - Appellants submitted that machines were not brought into the factory and no evidence produced by the department to show that they had actually brought the machine in the factory - Machines were purchased and directly sent buyer and to avoid delay separate invoice was raised by them - no evidence has been produced by the department to show that machinery had been brought to the factory - machines were not brought in the factory provisions of Rule 51A are not contradicted - penalty cannot be sustained

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal as no evidence was presented to prove that machines were brought into the factory, therefore Rule 51A of Central Excise Rules, 1944 was not violated. The penalty of Rs. 10,000 imposed on the appellants was overturned.