TMI Blog2019 (6) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... situation being revenue neutral, the demand of cenvat credit is not sustainable - the penalty imposed against the main Appellant M/s San Industries and the co-appellants is also not sustainable. Appeal allowed - decided in favor of appellant. - E/747, 793, 1025-1028/2011-DB - A/10964-10969/2019 - Dated:- 3-6-2019 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) Sh. S. J Vyas And Sh. V. S. Sejpal, Advocate for the for the Appellant Sh. K. J. Kinariwala, Authorized Representative for the Respondent ORDER PER: RAMESH NAIR The present appeals have been filed by M/s San Industries, its partners Sh. Satish Aggarwal and Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in or in relation to the final products. The adjudicating authority vide impugned order confirmed the demand of cenvat credit along with imposition of penalty. Penalty was also imposed upon other Appellants. Hence the present appeals before us. 3. Ld. Counsel Sh. S.J. Vyas with Sh. V.S. Sejpal, Ld. Advocate appearing for the Appellants submits that the credit has been denied on the ground that no manufacturing activity was conducted by the Appellant and hence the credit is recoverable from them. He submits that though they availed credit of ₹ 1,62,27,443/- but they paid amount of duty of ₹ 1,68,73,511 as duty while showing clearance of said goods. Thus an excess duty of ₹ 6,46,068/- has been paid in e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceuticals Ltd. 2005 (179) ELT 276 (SC) to support his contention that if the amount paid as excise duty is equal or more than modvat availed, then the situation is revenue neutral and there would be no further liability for recovery. 4. Ld. AR Sh. K. J. Kinariwala appearing for the revenue submits that the cenvat credit is liable to be recovered as the goods shown to be inputs were not used in manufacture. He supports the findings of the impugned order. 5. We have carefully considered the submissions made by both the sides and perused the records. We find that it is not in dispute that the Appellant did not undertake any manufacturing activity on goods on which the credit was availed by them. The partners of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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