Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (5) TMI 1198

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as made by BCEPL, tends to support the case of non-duty paid clearances. Period of limitation - Demand of modvat credit - inputs not utilized in the manufacture of final product - Held that:- it is seen that BCEPL have opted out of modvat scheme to avail exemption at the end of financial year 1998-99. Due intimation has been given to the Department. In the impugned order, the demand of modvat credit was set aside on the ground of time bar. It is a fact that the allegation of inputs having not been used in the manufacture of final product before opting out of modvat scheme has been based on the modvat accounts, RG-I and other records maintained by the BCEPL. As pointed out in the impugned order, there is no allegation of clandestine remov .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cise Appeals Nos.1130 to 1132/2008 & Excise Appeals Nos.1974 to 1976/2008 - Final Order No. 51344-51349/2016 - Dated:- 29-4-2016 - SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri Amresh Jain, DR For the Respondent : Shri A. Upadhyay, Advocate ORDER PER B. RAVICHANDRAN: These are six appeals against the order dated 31.03.2008 of Commissioner (Appeals-I), Indore. Three appeals are by Revenue, one appeal is by the main appellant/assessee, M/s.Bhandari Control and Electricals Pvt. Ltd. (BCEPL) and the other two appeals against penalty are filed by M/s. Bhandari Capacitors Pvt. Ltd. (BCPL) and Shri Ajit B. Bhandari, Managing Director of the main appellant/assessee. 2. The brief facts of the case .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... material was confirmed. Regarding penalties, Commissioner (Appeals) held that for the period prior to 28.09.1996 (date of introduction of Section 11AC), the main appellant was held to be liable for penalty of ₹ 2,00,000/- and ₹ 5,48,304/- for the period subsequent to that date. Regarding clearance of scrap, a penalty of ₹ 2,000/- was imposed. Penalty of ₹ 50,000/- each imposed on BCPL and the Managing Director was upheld. The present six appeals are against this order of Commissioner (Appeals). 3. Appeal by the BCEPL is taken up as that covers all aspects of the main proceedings in the case. There are four issues decided in the proceedings before the lower authorities. Of these, demand of ₹ 2,570/- on scrap .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cause notice along with relied upon documents. I have perused carefully the impugned order. The main thrust of the argument of BCEPL against the demand is that the goods in question were already cleared by BCPL in 1994 itself on payment of duty. These goods were transferred to Indore Office of BCPL and sold over a period of time. Hence, it is the argument of BCEPL that duty demand against them is not proper. Ld. Commissioner (Appeals) examined in detail and arrived at the conclusion that BCEPL are liable to central excise duty except for six items of capacitors. The reasoning given by ld.Commissioner (Appeals) cannot be faulted. The contention of BCEPL regarding clearance of these capacitors in 1994 itself to Indore office is not at all sup .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... EPL, as discussed in the impugned order, tends to support the case of non-duty paid clearances. 6. Regarding the second issue of demand of ₹ 3.76 lakhs towards modvat credit on inputs not utilized in the manufacture of final product. It is seen that BCEPL have opted out of modvat scheme to avail exemption at the end of financial year 1998-99.Due intimation has been given to the Department. In the impugned order, the demand of modvat credit was set aside on the ground of time bar. It is a fact that the allegation of inputs having not been used in the manufacture of final product before opting out of modvat scheme has been based on the modvat accounts, RG-I and other records maintained by the BCEPL. As pointed out in the impugned ord .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... capacitors and not capacitor banks. The findings of the lower authorities is based on the scrutiny of material records and in the appeal, Revenue has not produced any contrary evidence to interfere with such finding. 9. Regarding the demand of modvat credit of ₹ 3.76 lakhs on input credits at the time of opting out of modvat scheme and also regarding demand of duty on wires and cables, the findings in the impugned order have been found to be correct as discussed hereinabove and there is no merit in the appeals by the Revenue against such findings. No material evidence has been elaborated in the grounds of appeal to interfere with the findings of ld. Commissioner (Appeals) on these two issues. 10. Regarding the reduction of pena .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates