TMI Blog2010 (3) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs. Cenvat credit involved recoverable u/s 5B of Central Excise Act, 1944 subject to provisions of section 11A and 11AB. - E/61/2009 - 631/2010 - Dated:- 25-3-2010 - S/Shri M.V. Ravindran, Member (J) and P. Karthikeyan, Member (T) Shri Pradyumna G.H., Advocate, for the Appellant. Smt. Sudha Koka, SDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. - M/s. Swastik Engineering, Bangalore are engaged in the manufacture of brass strips, phosphor bronze strips and copper strips falling under chapter sub-heading 7409 21 00, 7409 11 00 and 7409 31 00 respectively of the Central Excise Tariff. During the period from December 2005 to December 2007, the appellants, M/s. Swastik Engineering received brass strips, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot for general use. This process constituted a process of manufacture. The Commissioner had erred in holding that the assessee was not entitled to Cenvat credit of duty paid on the various inputs received by it. 3. A major ground taken by the appellants concerns limitation. The plea taken by the assessee in this regard is reproduced below :- "From the facts of the case, it is plainly visible that the Appellants were convinced that the activity undertaken by them was not mere cutting or slitting of duty-paid coils but much more than that. Hence, they approached the Central Excise department for registration giving full details in their application (Annexure-D) about the major inputs and final products. Subsequent to the issuance of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their final products. The department had collected duty on the final products and relevant particulars were reflected continuously in the returns filed in the material period; no mala fide could be attributed at a later stage. The demand of credit and interest was not sustainable. 4. It is also submitted that the appellants could have validly passed on the duty credit to their customers as a trader. Therefore, the impugned demand was not sustainable. The appellants had not derived any benefit out of the impugned credit taken in their accounts. In the circumstances, the penalty imposed on the appellant under Rule 15(2) of the CCR read with Section 11AC was not sustainable. 5. We have heard both sides. 6. We have perused the case recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee subject to such conditions as may be specified in the said notification : Provided that the order for non-reversal of credit shall not apply where an assessee has preferred a claim for refund of excise duty paid by him : Provided further that the Central Government may also specify in the notification referred to above for non-reversal of credit, if any, taken by the buyer of the said product.]. However, these proceedings are subject to provisions of Section 11A 11AB. 7. However, we find considerable merit in the argument of the appellants as regards limitation. The departmental authorities were fully aware of the activities undertaken by the assessee during the material period. It had periodically filed returns relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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