TaxTMI 
TaxTMI 
2013 (1) TMI 200
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....dated 08.08.2011 E/1593/2011 PI/RKs/112/2011 dated 08.08.2011 E/1594/2011 PI/RKs/112/2011 dated 08.08.2011 E/1595/2011 PI/RKs/112/2011 dated 08.08.2011 E/1596/2011 PI/RKs/112/2011 dated 08.08.2011 2. The brief facts of the case are that the appellants are holder of Central Excise Registration and are engaged in the manufacture of Special Purpose Machines for Indian Railways falling under Chapter No.84 of the Central Excise Tariff Act, 1985. The appellants availed CENVAT Credit on inputs, capital goods and input services under the provisions of Cenvat Credit Rules, 2004. On the basis of information that the appellants were evading payment of Central Excise duty, investigations were carried out and on investigation ....
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....how-cause notices were confirmed by the original authority and CENVAT Credit/duty demanded was confirmed along with interest and penalty was imposed under Section 11AC of the Central Excise Act read with Rule 15 of the Cenvat Credit Rules. The appellants filed appeal before the Commissioner (Appeals), who vide the impugned orders taking into consideration the fact that the duty along with interest has already been paid by the appellants has waived the penalty in respect of issues No. (ii) and (iii) and confirmed the penalty for issue No. (i) & (iv) mentioned in para 2 above. The appellants have challenged the impugned orders in these appeals. 3. The learned Advocate appearing for the appellants submitted that the excise duty and interest....
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....dustries Ltd. Vs. Commissioner of Central Excise, Daman reported in 2009 (241) ELT 153 (Tri-Ahmd), which was confirmed by the Hon'ble Supreme Court as reported in Commissioner Vs . Mafatlal Industries Ltd. - 2010 (255) ELT A77(SC). He also relied upon the decision of the Hon'ble High Court of Karnataka in the case of CCE &ST, LTU, Bangalore Vs. Adecco Flexione Workforce Solutions Ltd . reported in 2012 (26) STR 3 (Kar) in support of his contention that when tax and interest has been paid before issue of show-cause notice, no notice is required to do so to the assessee. 4. Learned Dy. Commissioner (A.R.) appeared for the Revenue reiterated the findings of the lower authorities and submitted that the appellants were well aware that they we....
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....ere required to reverse/pay the amount equal to the CENVAT Credit availed on such accessories while clearing the same along with the final product, which they have not done and such a mistake cannot be accepted as a clerical error and the appellants' submissions in this regard are rejected. Since they have availed such credit despite knowing that the value of such accessories is not included in the assessable value of the final products and nor these accessories/inputs are capital goods for such product, the intention to wrongly avail CENVAT Credit is quite obvious and consequently they are liable for penal action under Rule 15 of the Cenvat Credit Rules read with Section 11AC of the Act. Accordingly, we confirm the Commissioner (Appeals) f....