2013 (5) TMI 319

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....GEMENT Per Rakesh Kumar: The appellant are manufacturers of Rectified Spirit, Extra Neutral Alcohol, Carbon dioxide and Bio Compost chargeable to central excise duty. They availed cenvat credit of central excise duty paid on the inputs and capital goods as per the provisions of Cenvat Credit Rules, 2004. The appellant on 4.2.2008 & 5.2.2008 cleared about 34 M.M. of scrapped capital goods in ....

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.... confirmed the demand of Rs.1,06,994/-. He also imposed penalty of equal amount under Rule 15(2) of the Cenvat Credit Rules read with Section 11 AC holding that the appellant had deliberately not paid this amount. On appeal being filed to the Commissioner (Appeals) against this order, the Commissioner (Appeals) upheld the Asstt. Commissioner's order. Against this Asstt. Commissioner's order, this ....

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....ount payable under Rule 3 (5A) had not been debited in the cenvat credit account, it cannot be alleged that the appellant had intention to evade this payment when this amount was paid before the due date and that in view of this, imposition of penalty under Rule 15(2) of the Cenvat Credit Rules read with Section 11 AC is not sustainable. 3. Ms. S. Bector, Authorised Departmental Representative ....

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....nt payable under Rule 3(5A) in respect of the consignment of the scrap cleared on 4.2.2008 & 5.2.2008 was liable to be paid by 5th of next month i.e. by 5th March, 2008 and as such, just because this amount was not paid immediately on clearance, it would not be correct to say that the appellant had intention to evade the payment when there is no dispute that the amount was paid on 7.2.2008 i.e. mu....