TMI Blog2019 (5) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... ure the appellant is required to pay duty equal to the Cenvat credit availed at the time of receipt - Only in case of manufacture the assessee is required to pay duty on the assessable value. In the present case, the activity does not amount to manufacture, the appellant is required to pay duty equivalent to the Cenvat credit availed. However, the appellant have discharged duty on transaction value therefore, the appellant is liable for payment of duty for the differential amount - The impugned order demanding entire Cenvat credit is not correct and legal - The demand of Cenvat credit should have been confined only for the differential amount. Penalty under Rule 15 of Cenvat Credit Rules read with Section 11AC of Central Excise Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel appearing for the appellant submits that after receipt of the imported machine in the factory, they have dismantled the machine and reassembled and only thereafter it was cleared on payment of duty on the transaction value. He submits that the activity carried out by the appellant amounts to manufacture and therefore, the duty was supposed to be paid on transaction value in terms of Section 4 and therefore credit is admissible in terms of Rule 16 of Central Excise Rules, 2002. He placed reliance on following judgments:- (a) Krishna Barrels P. Limited 2015 (40) STR 797 (Tri. Ahmd.) (b) Vardhman Stamping P. Limited 2017 (11) TMI 999 Tri Ahmd. (c) Apollo Tyres Limited 2011 (272) ELT 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty for the differential amount. The impugned order demanding entire Cenvat credit is not correct and legal. The demand of Cenvat credit should have been confined only for the differential amount. 5. The lower authority has also imposed equal amount of penalty under Rule 15 of Cenvat Credit Rules read with Section 11AC of Central Excise Act, 1944. Since the demand is reduced to differential amount, between the demand raised by the lower authority and the amount already paid by the appellant at the time of removal of the goods, the penalty under Section 11AC shall also stand reduced equal to the differential duty demand and not equal to the total demand confirmed. Since the duty demand is re-determined, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
