TMI Blog2015 (5) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... for the intended use specified in Column 3 of the table”. The order was placed on Patancheru unit and the certificate was in the name of Patancheru unit and therefore the stand taken by the Revenue that the appellant unit was not eligible for exemption cannot be found fault with. At the same time, we have to take note of the fact that the pipes have been used for the purpose for which the notification provided the exemption. Moreover both Patancheru unit and Azamabad unit belong to the same company. Further the appellants also explained that because of heavy workload and technical problems, pipes were supplied by the other unit. While the demand for duty cannot be found fault with as already mentioned and interest is also payable, we c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the certificate issued by the District Collector mentioned the name of the plant as the one in Patancheru whereas pipes were cleared by the Hyderabad Unit (appellant). Accordingly proceedings were initiated culminating in confirmation of demand for duty of ₹ 25,382/- for the clearances made in June 2005. Penalty of ₹ 25,884/- was also imposed. 3. Learned AR would submit that the appellants had deliberately suppressed the fact that exemption had been extended to their Patancheru unit whereas the goods were cleared by Azamabad unit. Therefore the demand for duty as well as imposition of penalty are sustainable. 4. We have considered the submissions. On going through the records and the appeal memorandum, we find that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r both Patancheru unit and Azamabad unit belong to the same company. Further the appellants also explained that because of heavy workload and technical problems, pipes were supplied by the other unit. While the demand for duty cannot be found fault with as already mentioned and interest is also payable, we cannot sustain the imposition of penalty under Rule 25 of Central Excise Rules since apparently there was a mistake on the part of the appellant and after all the pipes have been used for purpose for which exemption has been provided. Further the appellants have also reversed the entire amount of CENVAT credit availed in respect of the inputs since they had not paid the duty on the final product. Now that the duty on final products has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
