TaxTMI 
TaxTMI 
2017 (11) TMI 11
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.... and for non-confiscation of the raw materials, semi finished goods and finished goods which were seized during investigation, respectively. The appeals filed by appellants M/s Victory Electricals Ltd (VEL) and M/s Victory Transformers & Switchgears Ltd (VTSL) are against the confirmation of demands raised alongwith interest and also imposition of penalties. 4. On perusal of records, the relevant facts that arise for consideration are that M/s VEL and M/s VTSL are manufacturers of transformers and discharge the appropriate duty liability on the transformers manufactured and cleared, are availing cenvat credit of various inputs and input services for the manufacturing of such transformers; the transformers are manufactured by the appellants mostly for APEPDCL and APCPDCL which are State Government undertakings. The manufacturing activity of transformers is based upon the contract entered by appellant with APEPDCL and APCPDCL raised on the specification of the transformers which are to be purchased and also indicate that for particular transformer, the components which are used should have specific weight as also the transformer oil which is used. On detailed investigation said VEL ....
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....stand appropriated. I order that the remaining amount will be paid accordingly. Interest in accordance with the provisions of Section 11AB will also be payable. d. I impose penalty of equal amount i.e. Rs. 7,01,044/- under rule 15 (2) of the CENVAT Credit Rules, 2004 read with section 11 AC of the Central Excise Act, 1944. e. I confirm demand of Rs. 6,19,791/- towards service tax payable on Goods Transport Agency services during the period 01.01.2005 to 31.03.2007 under proviso to section 73(10 of the Finance Act, 1994. VTSL have already paid an amount of Rs. 5,89,588/- and I order appropriation of the same. I order that interest under section 75 of the Finance Act, 1994 shall also be paid on the amount of service tax held payable above. However, as the non payment of service tax is on account of the bona fide reasons and no fraudulent intent is noticed, I do not propose penal action under section78 of the Finance Act by virtue of the provisions contained in section 80 of the Finance Act. However, I order that penalty shall be paid under section 76 of the Finance Act, 1994 for non payment of the service tax. f. I impose a penalty of Rs. 5,00,000/- (Rs. Five lakh only) under ....
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....SC)] (14-17 of Case Law compilation) c. Atlas Conductors Vs. CCE, Mumbai [2008(221)ELT 231 (Tri.-Mumbai)] d. CCE Tirunelveli Vs. SSD Spinning Mills Ltd [2008(222)ELT 392] e. Mahesh Silks Mills Vs. CCE, Mumbai [2014(304)ELT 703(Tri.-Ahmd). f. Aum Aluminium Pvt. Ltd. Vs. CCE [2014(311)ELT 354 (Tri.-Ahmd). g. Rama Spinners Pvt. Ltd. Vs. CCE, Hyderabad [2017(348)ELT 321 (Tri.-Hyd). h. Commins India Ltd. Vs. CCE, Pune [2007(219)ELT 911 (Tri.-Mum.) 6. Ld. DR, on the other hand, submits that in respect of VEL and VTSL, detailed investigation was conducted on the basis of the information received as to availment of ineligible cenvat credit. It is his submission that both the appellants being limited companies, did not maintain any record of receipt of inputs and issue of inputs as required under Rule 9(5) of Cenvat Credit Rules, 2004 and Rule 10 of Central Excise Rules, 2002. It is his submission that appellants misused the inputs received in the factory on which cenvat credit was availed, is evident from the fact that appellant has been undertaking repairs of transformers received from State Electricity Boards and these repairs could not have been undertaken without utilisati....
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....ther appeals filed by Revenue E/840 844/2009, it is his submission that adjudicating authority has dropped the penal proceedings initiated against the individuals. It is his submission that investigation had revealed that all these individuals had played role in escapement of duty hence they need to be penalised. 8. Ld. Counsel while submitting rejoinder, submits that in respect of the demand on capital goods, the said capital goods were in fact installed at their own unit and is covered by the decision of Hon'ble High Court of Bombay in the case of 2009(324)ELT A 120 (Tri.-Bom.). As regards the service tax liability on GTA services, he submits that they had been filing the returns regularly and hence the demand is purely hit by limitation. 9. On careful consideration of the submissions made by both the sides and perusal of records, we find that the issue that requires the attention of the Bench is whether the said VEL and VTSL are required to reverse the cenvat credit, allegedly having consumed inputs in excess and unrecorded and held to have been removed clandestinely or otherwise. We find from the records that it is undisputed that the appellants M/s VEL and VTSL are manufactu....
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.... three phase 50 Hz double wound, CRGO Core Copper winding, outdoor type, conventional distribution transformers, the said purchase order also places an order for 2750 Nos. 25 KVA oil immersed naturally cooled three phase 50 Hz double wound Distribution Transformers; on mere casual perusal of the annexures to the purchase order placed, we find that they are technical specification indicating the weight of components. The perusal of the said technical specification, does not indicate that the weights of components in the said specification is the only permissible weight, which in our reading of the purchase orders placed, indicates that the weight of the material and the weight of the transformers as shown therein could be standards. There is nothing on record to show that the said Power Corporations will reject the transformers in which, if the weight transformer exceeds the wieght in technical specification. It is also surprising that in this case Revenue authorities have conspicuously refrained from recording any statement of the responsible Officers of APEPDCL and APCPDCL, which may have brought on record that excess input usage was not in their knowledge for drawing an inference....