COMMISSIONER OF CENTRAL EXCISE Vs. S.G. ENGINEERS

JUDGEMENT

(1.) Having heard counsel for the parties, the following substantial question of law is framed:--

(2.) The respondent is an assessee who suffered an order-in-original creating a demand of Rs. 9,78,957/- for wrongly filing and utilising the Service Tax paid on traded goods, which were not used in manufacturing. Penalty of an identical amount was also imposed under Rule 25 of Central Excise Rules, 2002 and Rule 15 of the Cenvat Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. Interest under Section 11AB of the Central Excise Act, 1944 it was directed shall be paid. Aggrieved, the respondent-assessee preferred an appeal but did not succeed and thereupon preferred a second appeal before the Custom Excise and Service Tax Appellate Tribunal.

(3.) The said appeal, Excise Appeal No. 1739 of 2010-SM, has been disposed of vide impugned order dated 24th July, 2011 in the following manner:--