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2016 (5) TMI 1198 - CESTAT NEW DELHI

2016 (5) TMI 1198 - CESTAT NEW DELHI - TMI - Demand of duty - Capacitors cleared by BCEPL without payment of duty under the cover of challans and documents in the name of BCPL - Held that:- on careful consideration of the evidences as analyzed by the Commissioner (Appeals), it is clear that the clearances of excisable goods from the premises of BCEPL could not be attributed to the old stock of capacitors purported to have been cleared in 1994 to the Indore Office of BCPL. There are sufficient ev .....

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odvat 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 removal of goods on which credits were availed. I agree with the findings of the ld. Commissioner (Appeals) on this issue of demand being hit by tim .....

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invoices raised to MPEB and as such, the demand on wires and cables could not be sustained. I agree with the findings of the ld. Commissioner (Appeals) in this regard.

Reduction of penalty by Commissioner (Appeals) - Section 11 AC of the Act - Held that:- ld. Commissioner (Appeals) examined the applicability of Section 11 AC introduced on 28.09.96. Considering the application of legal provisions during the material time and also considering the findings on duty liability as well as th .....

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- 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. .....

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tober, 1999. Further investigation resulted in a proceedings against the BCEPL by issue of show cause notice on 19.09.2000. The case was adjudicated by the Original Authority, who confirmed central excise duty demand of ₹ 18,12,476/- and imposed equal amount of penalty on BCEPL. He imposed a penalty of ₹ 50,000/- each on BCPL and on the Managing Director of BCEPL. On appeal, the Commissioner (Appeals) set aside the original order and allowed all the three appeals. Revenue filed appea .....

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₹ 1,78,356/- was set aside; central excise duty demand of ₹ 2,570/- on scrap 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 BCP .....

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acitors cleared by BCEPL without payment of duty under the cover of challans and documents in the name of BCPL. It is the case of the appellant/assessee that BCPL have surrendered their challans on 31.03.95 and before they leased out their factory premises to BCEPL they have cleared the manufactured capacitors lying in the factory premises to their Head Office on duty paid gate passes. These capacitors totaling 18,140/- KVAR were not manufactured by BCEPL and as such, they are not liable to any .....

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were belonging to BCPL. 4. It is noticed that this is a second round of litigation in the matter. The impugned order of Commissioner (Appeals) is issued as per the directions of the Tribunal as stated hereinabove. Ld. Commissioner (Appeals) examined all the evidences submitted by BCEPL as well as the allegations made in the show 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 .....

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g clearance of these capacitors in 1994 itself to Indore office is not at all supported by any corroboration. As pointed out by the Commissioner (Appeals), the goods cleared on payment of duty in Feb. 1994, were alleged to have been sold after 4 to 5 years to various parties. This contention of BCEPL has been discounted based on specific evidences clearly discussed in the impugned order. Specific instances of sales of these impugned goods have been examined to counter the submission of BCEPL. Re .....

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ese were the goods cleared from the manufacturing unit in 1994. Further, the balance sheets for 1994-95 and 1995-96 were not produced for corroboration. 5. On careful consideration of the evidences as analyzed by the Commissioner (Appeals), it is clear that the clearances of excisable goods from the premises of BCEPL could not be attributed to the old stock of capacitors purported to have been cleared in 1994 to the Indore Office of BCPL. There are sufficient evidences to support the conclusion .....

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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 removal of goods on which credits were availed. I agree with the findings of the ld. Commissioner (Appeals) on this issue of demand b .....

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ave collected amount over and above the invoices raised to MPEB and as such, the demand on wires and cables could not be sustained. I agree with the findings of the ld. Commissioner (Appeals) in this regard. 8. The above discussion and analysis covers substantially all the issues involved in the proceedings before the lower authorities. It is seen that the Revenue preferred three appeals against the said impugned order. The grounds of appeal are common in all these appeals. Four points were agit .....

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