TMI Blog2018 (2) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 11AC of the Central Excise Act, 1944 and under Rule 25 of Cenvat Credit Rules, 2002/Rule 15 of the CCR 2004 - interest upheld. Appeal allowed - decided in favor of appellant. - E/724/2009 - 42427/2017 - Dated:- 21-9-2017 - Smt. Sulekha Beevi C.S, Member Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellants: Shri Makarand P.S. Joshi, Adv For the Respondent: Shri B. Balamurugan, AC (AR) ORDER Per: Bench The brief facts of the case are that the appellants are engaged in the manufacture of parts of motor vehicles such as Deck Lid handle, Radiator Grill assembly etc., falling under Central Excise Tariff Act, 1985. The plastic moulded parts manufactured at the appellant's U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les 25 and 15 of the Cenvat Credit Rules, 2004 and also imposed penalty equal to differential duty under section 11AC of the Act. 3. In appeal, the Commissioner (Appeals) vide the impugned order dated 27.08.2007, upheld the order of original authority and rejected the appeal. Hence the appellants are before this forum. 4. On 21.09.2017, when the matter came up for hearing, on behalf of the appellants, Ld. Advocate Shri Makarand P.S. Joshi submits that department has alleged that they had not amortized and included the money value of tool cost and free issue materials like lamp assemblies, which were issued free of cost by M/s. FIL, in the assessable value of the said parts manufactured by them. Department has also alleged that their U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the verification certificate of the appellant dated 03.04.2007, it emerges that the said official had stated that this was an inadvertent lapse on their part and that on being pointed out, they had immediately debited duty liability. The appellant has also reversed excess credit availed from Unit-III. 9. We then find that there is a case for leniency in the matter of imposition of penalties, for which reason, we set aside the imposition of penalties under section 11AC of the Central Excise Act, 1944 and under Rule 25 of Cenvat Credit Rules, 2002/RuIe 15 of the Cenvat Credit Rules, 2004, however, subject to confirmation that interest has also been paid on the confirmed duty/credit amounts. (Dictated and pronounced in open court) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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