9911796707
TMI Blog2019 (10) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... -438 in Shree Developers Industrial Estate, Mahuakheraganj, Kashipur (Uttarakhand) and were availing 'Area Based Exemption'. The appellant-firm set up another unit adjoining the earlier one for manufacture of the same products, and applied for registration on 2.12.2013 in the prescribed form-A. The appellant was granted registration and they started production, and were paying duty and also availing cenvat credit. On post verification, superintendent inspected the premises and reported that the appellant had another unit adjoining a new unit, availing Area Based Exemption, the partners of the said two units are the same and thus, the two units were not entirely separate. Further, the raw materials and finished goods were also the same for b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her appeared to Revenue that as the appellant had availed cenvat credit on inputs, they were required to reverse the cenvat credit on the inputs lying in stock, treating it at par with the goods removed as such, as provided under sub-rule 3(5) of CCR Rules, 2004, at the time of closure of their unit. As such information of the closing balance of inputs were not provided by the appellants, the Revenue applied SION norms (Standard Input Output Norms, which has been specified by DGFT for the purpose of foreign trade), for ascertaining the closing stocks of inputs. On the basis of information submitted by the appellant as regards availing of cenvat credit on inputs by their letter dated 16.10.2014, applied the SION norms ratio, as published by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed with interest and further equal amount of penalty was imposed under Rule 15 of the CCR, read with Section 11 AC of the Act. 6. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals) on the ground that, under the facts and circumstances, there being admittedly no removal of inputs as such, no duty/cenvat credit could be demanded. Further, the appellant had relied upon the ruling of the Hon'ble Supreme Court in Dai Ichi Karkaria - 1999 (112) ELT 353, wherein it was held that the credit taken cannot be asked to be reversed on goods becoming subsequently exempt from duty. The ld. Commissioner (Appeals) was pleased to reject the appeal observing that the registration of the appellant was revoked. Therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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