2009 (1) TMI 721

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....g interest of Rs. 1,05,150/- on the above amount under Rule 14 of CCR read with Section 11AB of the Act and imposing a penalty of Rs. 8,97,355/- on HIL under Rule 15(2) of CCR read with Section 11AC of the Act. 2. The facts of the case are that HIL engaged in the manufacture of detergents, soaps and cakes had wound up its operations at the premises situated at No. 69 & 70 in Southern Venue, Industrial Estate, Ambattur on 13-9-04 and surrendered its central excise registration certificate on 1-10-04. On an inspection of the records of HIL subsequently, it was discovered by the authorities that HIL had removed the stock of credit availed inputs when the factory was leased out to M/s. Henkel Spic India Ltd. (HSIC) on 1-10-04 without re....

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....HIL had wound up operations as a central excise assessee immediately on leasing the factory to HSIL. HIL had surrendered the registration and intimated the fact to the department in 2004. The demand notice issued in the year 2006, therefore, was hit by limitation. The Ld. Counsel relies on the following two decisions of this Tribunal in support of the claim that the impugned demand is not sustainable. (i)      CCE, Chennai-IV v. Soft Caps Pvt. Ltd. - 2007 (215) E.L.T. 550 (Tri.-Chen.) In this case, the Tribunal dealt with an appeal filed by the revenue against an order of the Commissioner (Appeals) dropping the proposal to demand credit relatable to inputs and capital goods when the respondents therein had sold i....