TMI Blog2016 (2) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Petitioner : Mr. Sandeep Gopalkrishnan, Advocate, Menon Pai, Advocates For the Respondent : Mr. K. T. Pakshi Rajan, Asst. Commissioner (AR) ORDER PER : ASHOK K ARYA Both sides have been heard. The appellant viz., Travancore Cochin Chemicals Ltd., have been manufacturing caustic soda through their Mercury Cell Processing Plant during July 2004. The appellant later changed their manufacturing process to the Membrane Cell Process and had stopped production of caustic soda through the Mercury Cell Processing plant. The appellant had stock of 42262.5 kg of mercury in the plant and sold the said mercury on 22.9.2004 without payment of duty and without raising any invoice. 2. The Revenue issued the appellant sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercury during the course of electrolytic process and that Central Excise duty would be payable on the clearance of mercury pursuant to decommissioning of the plant. (d) It was therefore, not a case of clearance of input as such for the purpose of determination of any duty liability under the CENVAT Credit Rules. There was no provision in the CENVAT Credit Rules warranting a reversal of credit of duty on the Mercury in circumstances where the input was not cleared as such to rather clearance was of used inputs. 3.1 The appellant further pleads that there was no justification for imposition of penalty equal to the duty liability under Section 11AC of Central Excise Act. It is settled law that under Section 11AC penalty is only mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of duty. The goods were not sold on invoice and there was no any intimation to the Department regarding the sale. 5.2 The appellant s contention is that they brought the Mercury as an input and they sold it as such only and when they had got the duty-paid Mercury there was no question of any payment of duty on its disposal by way of sale, when they had shifted the manufacturing process from Mercury Cell Process to Membrane Cell Process. The appellant also stated during the hearing before the Tribunal that they had not taken any CENVAT credit in respect of this Mercury. However, facts on record do not throw any light on the fact if the appellant had taken any CENVAT or not on the said item of Mercury. However, regarding this sale/clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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