TMI Blog2018 (7) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... examine the documents if any furnished by the appellant and pass order - appeal disposed off. - E/42586 - 42587/2017 - 41557-41558/2018 - Dated:- 22-5-2018 - P. DINESHA, Member (Judicial) Shri A. R. Sreenivasan, Manager, for the appellant Shri R. Subramaniyam, AC (AR) for the Respondent. ORDER The appellant is a holder of Central Excise Registration No. AAACL5244NXM003 for the manufacture of CNC Lathes, Machining Centre and their parts classified under Chapter Sub-heading Nos. 8457, 8458 and 8466 respectively of the schedule to the CETA, 1985. It is the case of the Revenue that during the course of audit of books of accounts of the appellants, the officers of the audit wherein noticed that in addition to its main ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable for the delayed payment of the amount mentioned in Sl.No. (ii) above should not be demanded from them under the provisions of Rule 14 of the CCR read with Rule 6 (3A) (e) of CCR and Section 11AA of CEA. iv) A penalty under Rule 15(2) of CCR read with Section 11AC of CEA, should not be imposed on them for the said contravention. 2. The appellant filed its detailed reply vide its letter dated 16.04.2016 and it was in the case of the assessee, in nutshell, that they did not have a Trader licence or registration to involve in trading of goods and that they were involved in manufacturing activity alone. Further, they were clearing some inputs as spare parts to their customers and some of the inputs were cleared for further manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant has reversed the credit when the inputs are removed as such from the factory. The department has taken the view that such removal amounts to trading and has directed the appellant to expunge the credit to the extent of the value of inputs removed by them. In fact, such removal of inputs from one factory to the sister unit under the excise law by reversing the credit cannot be considered as a trading activity requiring the appellant to reverse the CENVAT credit availed on input services. I find that the issue of show cause notice as well as the confirmation of demand is without any legal basis. The impugned order is set aside and the appeal is allowed with consequential relief, if any. 4.2. The assessee also placed reliance on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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