2010 (1) TMI 1058

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....DER In this appeal, the prayer is to set aside a penalty of Rs 42,201/- imposed on the appellant under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act and also to set aside the demand of interest on duty raised under Section 11AB of the Act. There is no representation for the appellant despite notice, nor any request of theirs for adjournment I have exa....

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....from the records that the appellant was engaged in the manufacture of bulk drugs during the material period. They used to send their inputs (on which Cenvat Credit was availed) including furnace oil to a sister unit for manufacture of intermediate product, on job work basis. Officers of the department found that excess quantities of furnace oil had been dispatched to the sister unit during the per....

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.... the inadmissible credit'. The learned JDR has argued that, being a sister unit of the job worker, the appellant was aware of the fact that the job worker was using the input supplied by them for the manufacture of their own product. This, however, is not forthcoming from the records. The appellant was dispatching furnace oil and other inputs to their sister unit for manufacture of an intermediate....