TMI Blog2010 (3) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 11AC of Central Excise Act, 1944 set aside. Redemption fine also set aside. - E/488/2008-SM(BR) - 320/2010-SM(BR)(PB), - Dated:- 9-3-2010 - Shri M. Veeraiyan, Member (T) Shri B.S. Rajesh Agrajit, Advocate, for the Appellant. <?xml:namespace prefix = st2 /> Shri I. Baig, SDR, for the Respondent. [Order]. - This is an appeal against the order of the Commissioner (Appeals) No. 83 84 CE/Appeal/BPL/07-08 dated 21-8-2007. 2. Heard both sides. 3. The relevant facts, in brief, are that the appellant is a manufacturer of excisable goods such as transformer tanks, high pressure valves, pipe fittings. They have two units separated by a distance of about 1 Km. The second unit was registered with the Excise Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 and 27 of the Central Excise Rules. 3. At the outset, ld. Advocate for the appellants submit that they are not contesting the demand of duty and interest. However, he submits that the appellants removed the fabricated columns to Unit-II, which was a registered unit following challan procedure prescribed for removal of cenvatable inputs to Unit No. II, which was basically an expansion of the 1st Unit. There was no intention whatsoever in removing six fabricated columns for setting up the Unit-II. If there was any violation, it was technical in nature and question of imposition of penalty under Section 11AC did not arise. 4. Ld. SDR submits that columns fabricated in Unit-I should have been removed only on payment of duty and since they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e noticed that the movement is between two registered units of the same appellants and they have removed the goods undisputedly under challans prescribed under Rule 4 of the Cenvat Credit Rules. Under these circumstances, the claim of the appellant that they were under bona fide belief that such inter-unit movement can be made without payment of duty deserves to be accepted. It is not a case that they have removed the same without preparing any document. Since no mens rea is involved and since the movement is from one registered unit of the appellants to another, the penalty under Section 11AC is not justified. 6. In view of the above, the appeal is disposed of by upholding the demand of duty and interest as uncontested and setting aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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