2011 (5) TMI 424

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.....   2. The undisputed facts on record are that appellants after availing the modvat credit cleared the said capital goods to their sister unit for job work. As the same were not returned within a period of 180 days, from the date of clearance and no extension was sought by the appellants from their jurisdictional Central Excise officer, they were required to pay back the modvat credit so availed by them. It is seen that capital goods cleared in the year 2005-06 and 2006-07 were not in the possession of the appellant at the time of the second half of the cenvat credit, neither the said goods stands returned by the sister concerned unit. Accordingly, proceedings were initiated against the appellant by way of issuance of show cause not....

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.... said rule for the reversal of the cenvat credit. He, further clarifies that they have reversed the credit vide entry dated 01.10.2007. The contravention if any is only procedural, thus not inviting any penal action against the assessee.   Learned advocate further submits that invocation of the provisions of Section 11AC against the appellant is not justified inasmuch as the same relates to when duty of excise on the final products has not been levied or paid by reasons of fraud, collusion or willful suppression of facts with intent to evade payment of duty. As such, he submits that the penalty is not imposable under the said Section for willful intent to avail the benefits. Further, the provisions of Rule 15 of Cenvat Credit Rules,....