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2016 (6) TMI 544 - AT - Central ExciseClearance of goods to sister establishment - Non reversal of credit on such goods before clearance - Held that:- It cannot be said that it is entirely revenue neutral situation. In given point of time, they had sufficient credit balance in their PLA, which was far greater than amount taken as CENVAT Credit is irrelevant as the two accounts are totally independent accounts and if the amount in the CENVAT Credit is utilized, it will only result in increase the availability in the PLA accounts. The show-cause notice alleged that the fact regarding clearance without payment of duty was not informed to the department nor mentioned in the monthly ER-1 returns to prove the intention to evade payment of duty of the said goods. We do not find any evidence from Revenue to support the assertion that the appellants were required to give this information in the ER-1 returns. The said ER-1 returns are not part of the relied upon documents. Furthermore, it has not been established as to which entry in ER-1 were wrong or erroneous. The Order-in-Original asserts that the appellant had not submitted the invoices on which credit has been availed to the department. However, they have not pointed out that in what provisions of law was it necessary to submit the said invoices. In fact during the said period, there is no requirement of submitting any invoices. The appellants are Public Sector Undertaking and in most of the clearances listed in the show-cause notice, the credit of the duty paid was admissible to the refund unit and the situation was revenue neutral. Imposition of penalty is non justified. - Decided partly in favour of assessee.
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