Custom, Excise & Service Tax Tribunal
M/S.Varalakshmi Starch Industries ... vs Cce, Salem on 11 November, 2015
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/40867/2014
(Arising out of Order-in-Appeal No.46/2014 dated 6.2.2014 passed by the Commissioner of Central Excise (Appeals), Salem)
M/s.Varalakshmi Starch Industries Pvt. Ltd. Appellant
Vs.
CCE, Salem Respondent
Appearance Shri S. Jayanth, Consultant for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 11.11.2015 Final Order No. 41512 / 2015 Appellant had discharged duty liability with interest. There is levy of penalty of Rs.1,90,880/-. It is submitted on behalf of appellant that due to allowance and non-allowance of furnace oil to enjoy CENVAT credit, the difficulty arose in the claim. However, on the legal advice, appellant having discharged the duty liability as well as interest before issuance of show-cause notice, there may not be levy of penalty.
2. Revenue submits that the authorities have considered appropriately and passed appropriate order for which no interference is desirable.
3. Heard both sides and perused the records.
4. The challenge is only against levy of penalty of Rs.1,90,880/- under Rule 15 of CENVAT Credit Rules, 2004 read with section 11AC of Central Excise Act, 1994. The conduct of the appellant does not show that it had deliberate intention to cause evasion. As submitted by appellant that there was a confusing state of affair on applicability of law, there was delay in deposit of the duty element. That was discharged before show cause notice was issued. Considering the difficulties and no element of suppression with intent to cause evasion, there shall be no penalty on the appellant. The appeal is allowed on this count only. (Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2