2018 (3) TMI 750

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....f the credit  on the ground that  credit availed  on the strength  of supplementary invoice, which were issued by appellants Hinjewadi Unit in respect of duty, which was paid  only after departmental  officer pointed out  the short payment of duty, due to improper  method of  costing by Hinjewadi unit.  It was alleged that there was a suppression of facts on the part of the appellants Hinjewadi unit therefore duty paid on the fact that there is suppression, therefore  in such case credit on  supplementary invoice  is not admissible in terms of  Rule 9(1)(b) of Central Excise Rules, 2004. 2. Shri. S Narayanan, Ld. Counsel for the appellant submits that there is no sup....

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....o evade payment of duty.  In support of his submission he placed reliance on the following judgments: (a) Mahindra & Mahindra Ltd vs. CCE, Mumbai-V[2017-TIOL-2708-CESTAT-MUM] (b) STI Industries  Vs. CCE[2015(327) ELT 514(T)] (c) CCE, Vapi Vs. Tarapur Grease India Pvt Ltd[2016(334) ELT 416(Bom)] (d) Nirlon Ltd Vs. CCE, Mumbai[2015(320) ELT 22(S.C.)] (e) CCE, Chennai-IV Vs Tenneco RC India Pvt Ltd[2015(323)ELT 299(Mad)] (f) Karnataka Soaps & Detergents Ltd Vs. CCE Mysore/Bangalore[2005(192) ELT 8929(Tri.Ban)] (g) CCE, Hyderabad-IV Vs. jairajIspat Limited[2009(245)ELT 118(A.P.)] (h) Bosch Chasss Systems India Ltd Vs. CCE, Delhi-III[2008(232) ELT 622(Tri. LB)] ....

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....; unit belong the same company of the appellant therefore  whatever duty is paid or payable  by their HInjewadi unit was available as Cenvat credit to the appellant therefore  due to this  revenue neutrality  intention to evade excise duty is not established.  It is also observed that  settlement commission  in the case of Hinjewadi unit settled the case involving total duty of 75.62 lakhs whereas a token penalty of Rs. 1.5 lakhs  was imposed as against the  equal penalty  under Section 11AC proposed in the show cause notice.  This also shows that  the settlement commissioner has taken  very lenient view  on imposing penalty which further proves that there is no mala....