2014 (3) TMI 591

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The appellants filed this appeal challenging the impugned order of Commissioner (Appeals) against imposition of penalty of 2,61,328/- under Rule 25(1)(a) & (b) of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. 3. Brief facts of the case are that the appellants are engaged in the manufacture of sugar and are also availing credit in respect of capital good....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts relied upon the statement of one Shri Rajiv Malhotra, Deputy General Manager (Finance) where he specifically stated that in respect of scrap of narrow pieces of items on which credit has been taken and are clearly identifiable, duty has been reversed. Rest of the scrap is not easily identifiable on which cenvat credit has been taken, the duty has not been paid. However, the same has been paid ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts of Section 11AC are fulfilled and the appellants are not liable to pay penalty under Section 11AC of the Central Excise Act, 1944. 5. Revenue also relied upon the decision of Hon'ble Supreme Court in the case of C.C.E., Visakhapatnam vs. Mehta & Co. reported in 2011 (264) ELT 481 (SC) to submit that the 5 year period for invoking extended period will start from the date of knowledge by the D....