Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (6) TMI 508 - AT - Central ExciseCenvat- The appellants are engaged in the manufacture of recorded audio cassettes and blank audio cassettes classifiable under sub-heading No. 8524 32 90 and 8523 12 90 of the schedule to the Central Excise Tariff Act, 1985. It appears from the ER-I return for the month of February, 2005 that the appellant removed capital goods to their new unit on reversal of credit on the depreciated value. By a show cause notice dated 9-11-05 the appellant was directed to pay the differential duty basic Excise duty and education cess as they have contravened Rule 3(5) of Cenvat Credit Rules and to impose penalty. Held that- the appellant removed the capital goods to their new unit, where it was used in the manufacture of dutiable final product. Therefore, the appellant is eligible to avail the credit which is demanded in the present case. The entire exercise is revenue neutral and is futile. Therefore, the demand of duty and penalty are not warranted on the ground of revenue neutrality. Thus, the impugned order is set aside. The appeal filed by the appellant is allowed with consequential relief.
|