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TMI Blog2010 (1) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... r per : M.V. Ravindran, Member (J)]. - This appeal is directed against the Order-in-Appeal No. 109/2007, dated 2-7-2007. 2. The relevant facts that arise for consideration are the appellant had not reversed appropriate Cenvat credit amount of Rs 7,729/- + Cess Rs. 155/-, availed on inputs which were written off as obsolete and had availed inadmissible Cenvat credit of Rs. 6,311/- on short receipt of inputs and also undervalued goods cleared as free replacement, resulting in short payment of Central Excise duty to the extent of Rs. 40,805/- + Education Cess Rs. 297/-. On being pointing out by audit, the appellant made goods the short payment by making payment thereof, but failed to pay the appropriate amount of interest in terms of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at show cause notice has been issued to the appellant for reversal of Cenvat credit on the internal audit party's observation and demand of the interest on the goods cleared to their sister concern. It is his submission that Central Excise duty on the capital goods is not payable, though they are, written off, they are still in the factory premises and would be covered by the CBEC Circular dated 16-7-2002 and various decisions of this Tribunal. It is his submission that, despite this, since the amount involved was very meager, they have paid the entire amount of the duty and Education cess voluntarily vide Cenvat Register Entry Sl. No. 31680, dated 25-7-2005. As regards the reversal of Cenvat Credit against short receipt of the Condenser on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upulously. She would reiterate the findings of the learned Commissioner (Appeals). 6. We have considered the submissions made at length by both sides and perused the records. It is seen from the records that the appellant had discharged the entire duty liability, which is reversed by them on being pointed out by the audit party. The show cause notice which is issued by the lower authority is demanding interest and for imposition of penalties. It is seen from the records, as submitted by the appellant's representative, that they are not challenging the amount of duty reversed/paid by them before the adjudication proceedings. They are only challenging the liability of interest and the penalty imposed on them under Rule 27 of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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