Harsh International (Khaini) Pvt. Ltd vs Commissioner Of Central Excise on 29 May, 2012
3. Heard both sides for some time and I find that the very same issue had come up before the Honble High Court of Delhi in the case of Harsh International (Khaini) Pvt Ltd. Vs CCE [2012(281)741 (Del)] Honble High Court took a view that in the absence of any specific provision requiring the appellant to reverse the credit or pay tax on transaction value or after providing for depreciation, question of demand of duty does not arise. Therefore, according to the decision of the Honble High Court, the demand itself is not sustainable. However, in the appeal memorandum, the appellants are not challenging the demand for CENVAT credit made against them and entire amount has already been paid. The only challenge is to the penalty. In view of the decision of the Honble High Court taking a view that no tax was payable, the question of imposition of penalty does not arise. In the result, the appeal seeking waiver of penalty succeeds and the impugned order is set aside as far as penalty of Rs. 10,000/- is concerned.