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2015 (5) TMI 162 - AT - Central ExciseSSI Exemption - CENVAT Credit - Clandestine removal of goods - Held that:- As regards, non-accountal of 780 KG of plastic scrap found in the premises of M/s Annapurna Industries, there is no dispute that the same was not accounted for in the RG-1 Register. However, we are of the view that the appellant s plea that the same being intermediate product was meant for recycling and was exempted from duty under notification no. 67/95 CE and for this reason, the same was not accounted for in the RG-1 Register is acceptable. Accordingly, we hold that the confiscation of 780 KG of Plastic Scrap under Rule 25(1) of Central Excise Rule 2002 and imposition of penalty on M/s Annapurna Industries on that account is not sustainable and has to be set aside. - Decided in favor of assessee. As regards, the alleged removal of plastic containers by M/s Annapurna Industries to M/s Shivam Udyog - goods were not in fully finished condition and had been shifted to the adjacent premises of M/s Shivam Udyog on account of lack of space in M/s Annapurna Industries and as such the same cannot be said to have been cleared to M/s Shivam Udyog without payment of duty. In view of this, the duty demand of ₹ 9,398/- and confiscation of these goods has also to be set aside. Cenvat Credit - If the plastic granules had been cleared to job workers under job work challans on 08.09.2002 there is no explanation as to why the Authorized Signatory of the appellants was not aware about the same. Therefore, we hold that the Commissioner (Appeals) has correctly held that the plea of sending the plastic granules to job workers under job work challan are only an afterthought. However, we find that the amount of ₹ 2,90,613/- from M/s Annapurna Industries and the amount of ₹ 4,46,426/- demanded from M/s Shivam Udyog has been determined by adopting some value of the granules and calculating the duty on the same at rate of 16%, while in our view only the cenvat credit originally taken in respect of Granules would be payable which according to the appellant would be a much lesser amount. The cenvat credit attributable to 4125 KG of plastic Granules found short in the premises of M/s Annapurna Industries and 15,375 KG of Plastic Granules found short in the factory premises of M/s Shivam Udyog can be determined on the basis of the invoices issued by GAIL under which M/s JJ Packagerr had received the consignments. - Decided against the assessee.
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