2008 (10) TMI 506 - AT - Central Excise

Tribunal Upholds Commissioner Decision on Excise Penalty Case

The Tribunal upheld the Commissioner (Appeals) decision in a case involving the availing of credit on old blades as capital goods by a company ... Penalty - Clandestine removal Issues:1. Availment of credit on old blades as capital goods2. Demand of duty and penalty imposition under Section 11AC3. Appeal against the Commissioner (Appeals) decisionAnalysis:1. The case involved the Respondents, engaged in manufacturing Marble Slabs & Tiles, who cleared old blades and availed credit on them as capital goods. The Adjudicating Authority confirmed the duty demand, leading to the Respondent debiting the duty amount and facing penalty under Section 11AC of the Central Excise Act, 1944. The Commissioner (Appeals) later set aside the penalty, prompting the Revenue to file an appeal.2. Upon review, the Tribunal found no evidence of clandestine removal of goods. The confusion arose regarding duty payment on the clearance of old capital goods, which were done through commercial bills. The Tribunal concluded that there was no justification for imposing a penalty under Section 11AC of the Act due to the lack of material supporting clandestine activities. Consequently, the Tribunal upheld the Commissioner (Appeals) decision and rejected the Revenue's appeal.3. The judgment, delivered on 20-10-2008, emphasized the absence of grounds for interfering with the Commissioner (Appeals) order. The Tribunal's decision highlighted the importance of clear evidence in penalty imposition cases under Section 11AC of the Central Excise Act, 1944. The case underscored the significance of proper documentation and adherence to excise regulations to avoid unnecessary penalties and appeals.