TMI Blog2018 (12) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... removal in the form of tablets will not be removal as such requiring reversal of credit. If they are removed as Ephedrine tablets after manufacture then these attract Central Excise duty. From the facts narrated in the show cause notice, it is not clear whether the allegation is inputs were removed as such or whether Ephedrine tablets manufactured were removed without payment of duty. When Ephedrine Powder is the input, the allegation that they removed inputs as such in the guise of Ephedrine Tablets does not make any sense. Penalty - Held that:- When the amount of duty demand have been paid as per the invoices and credit has been reversed, the penalties imposed cannot be sustained. Appeal allowed - decided in favor of appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoices, the appellant had paid duty to the tune of ₹ 4,08,901/-. On 14/2/2000, the appellant in order to buy peace with the department had paid an amount of ₹ 2,87,986/-. Thus the total amount paid by the appellant is ₹ 6,96,887/-. The demand is only ₹ 6,72,397/-. The appellant has thus paid an excess amount of ₹ 24,490/- and therefore the confirmation of demand cannot sustain. It is argued by him that Ephedrine Powder was the input and the appellant had cleared them as tablets by paying duty. Though the duty was paid on the items which were removed, the department has not taken into consideration this aspect. During the relevant period, Ephedrine was not a controlled substance coming within the purview of NDP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l No.85/2004 dt.30/6/2004 has transferred the case to Call Book. There after the issue being only wrong availment of MODVAT Credit was taken up for adjudication. 6. The Show cause notice is highly vague and does not give the exact allegation. It is presumed to be alleged that appellant removed inputs as such without reversing the credit and has contravened provisions of 57F. But then it is also stated that inputs are removed as tablets. When the inputs are Ephedrine Powder, then the removal in the form of tablets will not be removal as such requiring reversal of credit. If they are removed as Ephedrine tablets after manufacture then these attract Central Excise duty. The appellants contend that they have paid the excise duty after raisin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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