2017 (2) TMI 616

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....er (AR) for the Respondent [Order per: Sulekha Beevi, C.S.] The appellants are engaged in manufacture of Veneers and Plywood and are registered with the Central Excise Department. The appellants imported logs which are inputs for their final products by paying appropriate customs duty. The timber logs used as inputs for final products were also cleared as such by the appellants. The appellan....

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.... by the appellants were appropriated. Being aggrieved, the appellant filed appeal before the Commissioner (Appeals) and vide order impugned herein, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, the Ld. Counsel N.V. Ramana Rao argued that the appellant while clearing the timber logs as such, issued invoices and had maintained log register and RG-23....

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....d the amount for the normal period immediately on being pointed out by the Department and even prior to the issuance of Show Cause Notice, therefore, no penalty could be imposed. 3. Against this the Ld. AR, Shri. P.S. Reddy reiterated the findings in the impugned order. He submitted that the appellant having not reversed the credit when inputs were removed as such, is guilty of willful suppress....

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....t to evade payment of duty and pleaded that the penalty be set aside. He also argued that the demand raised invoking the extended period is not sustainable. 5. On perusal of records, I find that the appellant has not reversed the credit for the relevant period when the timber logs/inputs were removed as such. Therefore, there is irregular availment of credit for which the demand has been rightl....