Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise vs M/S. Bellary Steels And Alloys Ltd on 4 October, 2016
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Appeal(s) Involved: E/950/2005-DB (Arising out of Order-in-Original No.22/2004-(Commr.) dated 1.12.2004 passed by Commissioner of Central Excise and Customs (Appeals), Belgaum.) Commissioner of Central Excise Belgaum. Appellant(s) versus M/s. Bellary Steels and Alloys Ltd. Respondent(s)
Appearance:
Mr. J. Harish, AR For the Appellant None For the Respondent Date of Hearing: 30/09/2016 Date of Decision: 04/10/2016 CORAM:
HON'BLE SHRI S.S. GARG, JUDICIAL MEMBER HON'BLE SHRI ASHOK K. ARYA, TECHNICAL MEMBER Final Order No. 20880 / 2016 Per : Ashok K. Arya The Revenue viz., Commissioner of Central Excise and Customs, Belgaum is in appeal against Order-in-Original dated 1.12.2004 passed by the Commissioner of Central Excise, Belgaum whereunder inter alia CENVAT credit of Rs.2,17,86,565/- was disallowed and penalty of Rs.25,00,000/- (Rupees Twenty Five Lakhs) was also imposed.
2. The appellant viz., Commissioner of Central Excise, has been represented by learned AR, Shri J. Harish and none appeared for the respondent viz., M/s. Bellary Steels and Alloys Ltd.
3. The learned AR based on the appeal memorandum inter alia states that as per Section 11AC of Central Excise Act penalty should be equal to the CENVAT credit irregularly availed. He says that Commissioners order imposing lesser penalty is not legally tenable.
4. After careful consideration of the facts on record and submissions made by the Revenue, we find that Revenue never invoked the provisions of Section 11AC of Central Excise Act, 1944 in the show-cause notice (SCN) dated 3.5.2002 issued to the respondent viz., M/s. Bellary Steels and Alloys Ltd. In the SCN, Revenue invoked Rules 25 and 27 of Central Excise Rules, 2002 along with Rule 13 of CENVAT Credit Rules, 2002 for imposing the penalty on the respondent. The Commissioner in the impugned order has imposed penalty of Rs.25,00,000/- (Rupees Twenty Five Lakhs) under Rules 25 and 27 of Central Excise Rules, 2002 along with Rule 13 of CENVAT Credit Rules, 2002.
4.1 Considering the facts on record and when Section 11AC of Central Excise Act, 1944 has never been invoked by the Revenue in the show-cause notice, the plea by the Revenue for imposing equivalent penalty is not legally tenable and cannot be accepted. Therefore, the Revenues appeal for increasing the penalty to the amount equivalent to wrongly availed CENVAT credit amount is not sustainable and is hereby rejected as without merits.
5. Considering the above submissions, the appeal is rejected as without merits.
(Order is pronounced in open court on 04.10.2016.) ASHOK K. ARYA TECHNICAL MEMBER S.S. GARG JUDICIAL MEMBER rv 2