2011 (7) TMI 476

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....er. Rakesh Kumar : The appellants are manufacturers of batteries chargeable to central excise duty. They availed cenvat credit of duty paid on inputs and capital goods used in the manufacture of their final products under Cenvat Credit Rules, 2004. There was default in discharge of monthly duty liability by the due date in terms of the provisions of Rule 8(1) of the Central Excise Rules, 2002 a....

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.... duty had not been paid consignment-wise and through PLA. The show cause notice was adjudicated by the Addl. Commissioner vide Order-in-Original dated 18.02.2010 by which the duty demand and cenvat credit demand, as made in the show cause notice were confirmed along with interest and besides this, penalty of equal amount was imposed under Section 11 AC. 2. On appeal to the Commissioner (Appeals....

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.... service tax paid on the rental of the depot and also on transportation of the goods from the factory to various sales depots and the same has been rightly availed, that transfer of cenvat credit of Rs.93,112/- from the Cenvat credit account to PLA is through oversight and in any case, such transfer is revenue neutral, that the credit of Rs.3,502/- had been wrongly taken in respect of generating s....

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....ioner (Appeals) in the impugned order and emphasised that the appellants had wrongly and deliberately transferred an amount of Rs.93,112/- from Cenvat credit Account to PLA, that during the forfeiture period they were required to pay the duty consignment wise and through PLA only, while they have not done so, and that in view of this, penalty of Rs.5 Lakhs has been rightly imposed on them under Ru....