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2015 (2) TMI 789 - AT - Central ExciseCenvat Credit - Transfer of credit - amalgamation - On granting common registration for these two divisions, the appellant merged the separate Cenvat credit accounts of the two divisions. At that time there was some Cenvat credit balance available in the Excel Fibre Division which was used commonly for payment of duty on all the finished products including the Viscose staple fibre - Held that:- Impugned order is an Ex-parte order passed without hearing the appellant. Prima Facie, we also find that the judgment of Hon ble Madras High Court in the case of CCE Madurai vs Rajshree Sugars and Chemicals Ltd. reported in [2013 (6) TMI 654 - MADRAS HIGH COURT], appears to be applicable to the facts of this case but this judgment has not been considered by the Commissioner and he decided the matter Ex-parte. In any case we do not find any justification as to how the penalty of ₹ 50 lakh can be imposed on the appellant company under Rule 27 of the Central Excise Rule 2002, the maximum penalty imposable under which is only 5000/-.The impugned order is, therefore, set aside and the matter is remanded to the Commissioner for denovo adjudication after hearing the appellant and also keeping in view the judgment of hon ble Madras high Court in the case of Rajshree Sugar and Chemicals Ltd.(Supra). - Decided in favour of assessee.
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