Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 561 - AT - Central ExciseDuty demand on the removal of scraps - assessee availed CENVAT credit on the capital goods - Held that:- As find from the statement of Shri D. C. Goyal, General Manager that they were unable to segregate pertaining to the scrap of capital goods on which they have taken CENVAT credit from those normal scraps. It is revealed from the record that the appellant availed Cenvat credit on the capital goods, which were cleared as scrap materials. The claim of the appellants that they have not availed Cenvat credit on capital goods of scrap material, required to be established by them. Thus find both authorities below had examined the issue in detail and thereafter modified the demand. If the appellant fails to demonstrate that they had not used CENVAT credit on the scrap of the capital goods, they are liable to pay duty on the clearance on such scrap material. The appellant had not disclosed the clearance of scrap to the Department and therefore, extended period of limitation would be invoked. In view of the above discussions, the demand of duty alongwith interest and penalty is upheld. Both the authorities below had not given option to pay penalty 25% of the duty under section 11 AC of the Act. The appellant is entitled to pay penalty 25% of the duty alongwith entire amount of duty and interest within 30 days from the date of communication of this order. The appeal filed by the appellant is disposed of in the above terms.
|