Custom, Excise & Service Tax Tribunal
M/S. J & K Pulp Paper P.Ltd vs Cce, Jammu on 27 June, 2016
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
SCO 147-148, SECTOR 17-C, CHANDIGARH-160017
SINGLE MEMBER BENCH
Court-I
Appeal No.E/50699/2014
[Arising out of the OIA No.70-CE-APPEAL-CHD-J&K-2013 dt.27.2.13 passed by the CCE(Appeals), Chandigarh)
Date of Hearing/Decision: 27.06.2016
For Approval & signature:
Honble Mr.Ashok Jindal, Member (Judicial)
1.
Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No
2.
Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
No
3.
Whether their Lordships wish to see the fair copy of the order?
seen
4.
Whether order is to be circulated to the Department Authorities?
Yes
M/s. J & K Pulp Paper P.Ltd. Appellant
Vs.
CCE, Jammu Respondent
Present for the Appellant: Shri M.S.Dhaliwal, Consultant Present for the Respondent: Shri R.K.Sharma,AR Coram: Honble Mr.Ashok Jindal, Member (Judicial) FINAL ORDER NO.: 60780/2016 PER: ASHOK JINDAL The appellant is in appeal against the impugned order imposing penalty under section 11AC of the Central Act, 1944.
2. The brief facts of the case are that during the period 2009-10 to 2010-11, the appellant was availing the benefit of exemption Notification No.04/2006 dated 1.3.2006 wherein on manufacture of writing and printing paper of 3500 MTs are exempted from payment of duty. As the appellant was availing the above said exemption but continued to avail credit on inputs. During the course of investigation, it was found that the appellant is availing exemption as well as taking credit on inputs which is not permissible. Therefore, on pointing out by the Revenue, the appellant reversed the credit wrongly taken and paid interest for the intervening period also. Later on , a show cause notice was issued to the appellant to appropriate the amount already paid and to impose penalty under section 11AC of the Act. Aggrieved with the said order imposing penalty under section 11AC of the Act, the appellant is in appeal before this Tribunal.
3. Heard the parties and considered the submissions.
4. I have examined the show cause notice. In the reply to the show cause notice the appellant has stated that they have taken the credit due to ignorance and it was alleged in the show cause notice itself that the credit wrongly taken by the appellant. As it is alleged in the show cause notice that the appellant has taken the credit wrongly, therefore, the provision of section 11AC are not attracted to the facts of the case as there is not malafide intention of the appellant to avail the credit. In the circumstances, I hold that as the provisions of section 11AC are not fulfilled, therefore, penalty is not imposable on the appellant. Accordingly, the impugned order is modified quo imposing penalty on the appellant and the penalty is set aside.
5. The appeal is disposed of in the above terms.
(dictated and pronounced in the court) (ASHOK JINDAL) MEMBER (JUDICIAL) mk 1