2005 (11) TMI 298

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....t, SDR, for the Respondent. [Order (Oral)]. - The appellant is challenging the imposition of 25% of duty liability as penalty under Section 11AC of the Central Excise Act, 1944. The appellants are manufacturers of Motor Vehicles. They availed CENVAT credit facility. The Department had noticed that they had cleared tools, dies and moulds, on which credit was availed, to the manufacturers of c....

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....ook three months to reverse the credit. Had they reversed the credit immediately before the issue of show cause notice, then they would have been eligible for the credit and penalty would not have been imposable. He submits that the rule is very clear that they were to reverse the credit, if they were to clear the goods to other manufacturers. He further submits that the Commissioner (Appeals) has....