9911796707
TMI Blog2016 (4) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondent : Shri R.K. Gupta, DR ORDER PER: SULEKHA BEEVI C.S. The allegation raised against the appellant is that appellant availed 100% Cenvat credit on capital goods supplied by their sister unit, in the same financial year and also did not take into account the depreciation on old & used capital goods, while clearing these from their sister unit. 2. Brief facts are as under: 3. Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them, whereas they were required to clear these capital goods on depreciated value to be calculated in terms of Rule 3 (5) of the Credit Rules, and thus appellants availed surplus credit. On being pointed out these objections, the appellants reversed the credit alongwith interest. According to department the appellants did not intimate the department the fact of availing full Cenvat credit on capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Cenvat Credit Rules has no relevancy or application to the facts of this case. 4. Heard both sides. I do find force in the arguments advance by the Department. Rule 10 relates to transfer of Cenvat credit lying unutilized when the manufacturer shifts the factory to another site on account of change of ownership etc. In this case the old and used capital goods were cleared to the sister unit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had not intimated regarding the alleged credit availed. That it would not have come to light but for the scrutiny of records by officers and that therefore appellant is guilty of suppression of facts. Equal amount of penalty under Rule 15 read with 11AC is imposed upon the appellants besides separate penalty upon the Vice President under Rule 26 of Central Excise Rules. The appellant has reversed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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