2016 (1) TMI 433

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....edule to the Central Excise Tariff Act 1985. During the audit by the Central Excise Office in the month of May 2008, it was noticed that during the period 2005-06 to 2007-08, the appellant company cleared the semi finished goods to their sister unit without discharging duty. They have cleared the inputs as such to their sister unit without reversal of the Cenvat Credit as required in the Cenvat Credit Rules 2004. After detection by the audit party, the appellant company paid the entire amount of duty on clearance of semi-finished goods and reversed the Cenvat Credit on inputs during the period from 2005-2006 to June, 2009 time to time. 2. A show cause notice dtd 23.3.2010 was issued proposing demand of duty of Rs. 8,70,596/- and the Cenv....

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....n - 2012.276.ELT.532 (Tri.Ahmd) b) Standard Grease Specialties Pvt ltd Vs. CC, Vapi - 2014.303.ELT.434 (Tri.Ahmd) c) CCE&C, Surart Vs, Gujarat Glass Pvt Ltd - 2013.290.ELT.538 (Guj.) 4. The Learned Authorised Representative on behalf of the Revenue reiterates the finding of the Commissioner (Appeals). He submits that the issue of Revenue neutrality would not be applicable in every case. He submits that in the present case the Cenvat Credit Rules particularly provides to reverse the credit on clearance of the input as such. It is further submitted that the appellant had not paid the duty on the semi finished goods, which was detected by the audit party. It is a clear case of suppression of fact and the imposition of pena....

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....e ground of the Revenue neutrality. 7. I find force in the submission of the Learned Advocate in respect of imposition of penalty. The decisions relied upon by the Learned Advocate are in the context of limitation and it was held that Revenue neutrality would be a factor for deciding the issue. In the case of Standard Greaves Specialties Pvt Ltd (supra), as relied upon by the Learned Advocate, the Tribunal upheld the penalty under Rule 15 of the Cenvat Credit Rules 2004 in the identical situation. It is revealed from the Adjudication order that the appellant submitted the statement showing month-wise details of payment of duty from Cenvat account and PLA in respect of both the units during the material period. It is also recorded that th....