AMAR REMEDIES Vs. COMMISSIONER OF CENTRAL EXCISE, SURAT

JUDGEMENT

(1.) HEARD both sides.

(2.) REVENUE as well as the assessee have filed appeals against Order -In -Appeal No. RKA/370 -371/SRT -I/2009, dated 8 -6 -09. The assessees appeal is against upholding of the order of lower adjudicating authority confirming the demand and various other proposals in the show cause notice. Revenues appeal is against setting aside of penalty imposed under Rule 15(2) read with Section 11AC. Assessee appellant has also filed counter in the style of cross objection against the appeal filed by the department. The issue involved in the appeal is common and therefore they are taken together.

(3.) BRIEFLY stated the facts of the case are that the assessee appellants were engaged in manufacture of Tooth Paste/Powder (Ayurvedic), Balm and Gateup falling under Chapter 33 of Central Excise Act, 1985. They have availed Cenvat Credit on the strength of the invoices issued in the name of their unit at Daman. However, they applied for Central Excise registration subsequent to the availing of Cenvat Credit. The department learnt about this from the return filed by the assessee and initiated proceedings against the assessee. The lower adjudicating authority has confirmed the demand of Cenvat Credit of Rs. 3,97,191/ - involved in the case along with interest and also imposed penalty of equal amount against the assessee and a penalty of Rs. 2,000/ - upon the Manager of the assessee. Aggrieved by this order, the assessee filed appeal before Commissioner (Appeals) who upheld the demand of duty and interest and set aside the penalty imposed. Still aggrieved, the assessee filed this appeal before Tribunal. Revenue also filed appeal against the order of Commissioner (Appeals) against setting aside the penalties.