2007 (6) TMI 519 - AT - Central Excise

Tribunal remands order on penalty for clearing goods without reversing credit, emphasizing proper resolution.

The Tribunal set aside the order confirming penalty and interest for clearing inputs/capital goods without reversing credit availed, remanding the matter ... - Issues involved: Appeal against imposition of penalty and recovery of interest for clearing inputs/capital goods without reversing credit availed.Summary:1. The appellant cleared inputs/capital goods without reversing credit availed, leading to a demand for penalty and interest. The adjudication order confirmed the demand, which was upheld by the Commissioner (Appeals). 2. The appellant argued that Sections 11AB and 11AC are not applicable as there was no determination of duty under Section 11A. They contended that the order-in-original confirmed the demand without proper notice, requesting a waiver of the entire amount. 3. The Revenue argued that interest and penalty were correctly imposed due to the appellant's actions. 4. The Tribunal noted that the Commissioner (Appeals) did not address the appellant's argument regarding the confirmation of demand exceeding the show cause notice. As a finding on this issue is crucial for imposing penalty and interest, the Tribunal set aside the order and remanded the matter for reconsideration. 5. The Tribunal remitted the case back to the Commissioner (Appeals) to re-examine the issue after granting the appellant an opportunity to be heard, emphasizing the importance of resolving the outstanding issues before imposing penalties or interest. 6. The appeal was allowed by way of remand, with all issues left open for further consideration by the Commissioner (Appeals).