TMI Blog2015 (11) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... uts, when sister concerns are also eligible to take CENVAT credit. Therefore, in the absence of cogent and reliable evidence particularly on the diversion of these inputs, the Tribunal applied the doctrine or principle of revenue neutrality. - Tribunal has taken this factual position from order-in-original itself. The only procedure that was required to be complied with was clearance of the raw materials after reversing the credit availed on it. Thus, the duty amount should have been paid and thereafter when these inputs or raw materials were utilized in the manufacture of the final product, the CENVAT credit could have been claimed but this procedure was not followed. - merely because the penalty has been notionally imposed on all the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radictory conclusions rendered because if the argument of revenue neutrality is accepted, then, there was no occasion to impose penalties on the assessees. Ordinarily in such cases, no penalties can be imposed. Having imposed penalties, the Tribunal's orders cannot be prima facie sustained and must be set aside. 3. Mr.Shah, on the other hand, submitted that the Tribunal was dealing with appeals of the assessees. The appeals were filed by one M/s.Standard Oil and Grease and M/s.Tarapur Grease India Private Limited so also some individuals. The order in original dated 31 January/29 February 2012 was challenged because M/s.Standard Grease, Silvassa ('SGS') is engaged in the manufacture of petroleum, lubricating grease, lubricati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence on record to suggest that the inputs cleared by the assessees without reversal of the CENVAT Credit were sent elsewhere. Mr.Shah, therefore, submits that the conclusion of the Tribunal in paragraph 5.2 of the impugned order is consistent with the material placed on record. Eventually those with whom the inputs were exchanged, would have claimed credit on the same and when they were utilized in the manufacture of final product, then, this conclusion should be sustained and raises no substantial question of law. The appeals therefore, should be dismissed. 4. We have with the assistance of Mr.Oak and Mr.Shah perused the orders of the Tribunal. The Tribunal has noted the factual controversy. It has noted that three companies are indee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or evidence was placed. The Tribunal has taken this factual position from order-in-original itself. The only procedure that was required to be complied with was clearance of the raw materials after reversing the credit availed on it. Thus, the duty amount should have been paid and thereafter when these inputs or raw materials were utilized in the manufacture of the final product, the CENVAT credit could have been claimed but this procedure was not followed. It may be, as observed by the adjudicating authority, that this mode of clearance gives some temporary benefit to the associate companies but the objection raised was of diversion of goods. That case could not be substantiated by the revenue as is evident from even paragraph 67.10 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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