2016 (1) TMI 691

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....ssistant Commissioner (AR) ORDER Per: Raju The appellant, M/s Syndicate Exhaust Systems (P) Ltd., are engaged in manufacture of motor-vehicle parts. A demand show-cause notice was issued to them on two counts: - (i) During scrutiny of records, it was noticed that they had cleared raw materials/inputs on which they had taken CENVAT Credit on payment of duty on the prevailing value of go....

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....ases to their sister unit and they were entitled to take CENVAT Credit of the same in their sister unit. She also argued that they had reversed the amount demanded along with interest before issue of show-cause notice and therefore, case is squarely covered by the decision of Tribunal in case of MIRC Electronics Vs. Commissioner of Central Excise, Thane-I - 2015 (318) ELT 682 (Tri-Mum). She furthe....

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.... Spinning & Weaving Mills Vs. Union of India - 2009 (238) EKT 3 (SC). 5. I have carefully considered the rival submissions. I find that the show-cause notice does not highlight any grounds indicating suppression or mis-declaration. The statement of the Chief Executive Officer of the company also does not indicate any reasons for invoking suppression/mis-declaration. The Chief Executive Officer ....

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....he sister unit hence the issue is of revenue neutral situation. The Tribunal accepting the bona fide plea as also revenue neutral situation, set aside the penalties imposed on the appellant therein. In the case in hand, identical issue is argued, regarding the revenue neutral situation which we find has strong force. Since there is revenue neutral situation, there cannot be any intention to evade ....