2011 (5) TMI 424

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..... ; The appellants are engaged in the manufacture of excisable goods falling under Chapter 73 and 84 of the Central Excise Tariff Act, 1985. During the year 2005-06 they received capital goods and availed modvat credit on the same to the extent of 50%. The remaining 50% credit was availed in the subsequent year.   2. The undisputed facts on record are that appellants after availing the modvat .....

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..... mposition of penalty.   3. It is seen that during the course of adjudication, the appellant debited their cenvat credit and reversed the credit attributable to the said capital goods, vide entry No. 317 dated 01.10.2007 in their RG23 Part-II account. The notice resulted in passing an order by the original adjudicating authority confirming the reversal of modvat credit along with confirmation .....

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..... if the same are not received back within a period of 180 days from the date of their clearance. Hew submits that there is no time limit prescribed in the said rule for the reversal of the cenvat credit. He, further clarifies that they have reversed the credit vide entry dated 01.10.2007. The contravention if any is only procedural, thus not inviting any penal action against the assessee.   L .....

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..... ersal of the credit after a gap of 180 days period.   6. He also submits that the above ground were raised before the Commissioner (Appeals), he has not discussed the same and has passed a cryptic order. 7. After hearing the learned DR, we find that Commissioner (Appeals) has rejected the appeal by observing as under :- I have gone through the case papers and submissions made by the appell .....

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..... l adjudicating authority without discussing as to how the provisions of Section 11AC or Rule 15 are applicable. He has also not discussed the applicability of Rule 25, under which penalty stands imposed upon the appellants. He has also not considered the appellant s prayer for reduction in quantum of penalty on account of bonafide. We therefore, deem it fit to set aside the impugned order and rema .....

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