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TMI Blog2014 (7) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... , Director of M/s. Tej International Pvt. Ltd. 2. Briefly stated facts of the case are that appellants are engaged in the manufacture of footwear falling under sub-heading No. 6401.11 of the schedule to Central Excise Tariff Act, 1985. Appellants are having another factory in the name of M/s. Tej International Pvt. Ltd., 10th -11th KM Stone, Agra Mathura Road, Antoni, Agra (UP). Appellants had decided to shift their Bhiwadi unit to their Agra Unit for the sake of merger. They have closed down manufacturing activities at their Bhiwadi unit on 01.12.2004 and shifted their entire factory located at Bhiwadi alongwith entire machinery, capital goods, inputs and finished goods as lying in their Bhiwadi unit as on 01.12.2004 to their Agra unit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for shifting of unit. Hence, the appellants have not violated any of the provisions of Central Excise Rules, 2002 and Cenvat Credit Rules, 2004. Hence, imposition of penalty is unwarranted and without authority of law. (ii) In the instant matter the appellants have shifted their factory from one place to other place alongwith entire set up. This is not a case of removal of any goods from the factory, but shifting of entire factory from one place to another place taking reasonable steps and entire goods transferred from one place to other place have been verified by the counterpart of the department. In such a situation referring the provisions of removal of goods from factory is uncalled for, where ownership remained with the same company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant matter, violation of any of the provision of Central Excise Rules, 2002 or Cenvat Credit Rules, 2004 with intent to evade payment of duty is absent. All the activities remained well within the knowledge of the department. Hence, imposition of penalty is illegal. 5. The Commissioner (Appeals) upheld the impugned order, by observing as under:- 6. I have carefully gone through in case records, grounds of appeal and submissions made at the time of personal hearing. The issue before me is whether the appellant had followed the procedure to clear the goods without payment of duty from the factory at Bhiwadi to their factory at Agra and they are liable for penal action or oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner (Appeals), has observed that even if there is no provision of law for taking prior permission for shifting the goods to their another unit, they should have intimated to the department so that necessary arrangement could have been made to safeguard the revenue. I have seen the intimation letter filed by the appellant. The first letter was filed on 06.12.2004 itself, clearly stating that they are shifting their factory from Bhiwadi to Agra as they have closed down manufacturing activities at their Bhiwadi Unit. They clarified that the entire quantity of inputs, under-processed goods, finished goods and capital goods will be shifted from thereto their Agra Unit. 7. Second intimation was given to Deputy Commissioner vide letter dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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