CCE Vs. SAHIL ORGANICS PVT. LTD.

JUDGEMENT

(1.) BEING aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. I have heard Shri S.K. Mall, learned SDR for the Revenue and Shri Jaydeep Patel, learned representative appearing for the respondents.

(2.) AS per facts on record respondents are engaged in the manufacture of various excisable goods falling under Chapter 32 & 39 of the first schedule to the Central Excise Tariff Act. They were availing the benefit of small scale exemption notification No. 8/03 dated 01.03.03. During the year 2006 -07, they switch over to payment of duty on their final product under cenvat scheme. Accordingly they availed transitional credit on the inputs lying as such on the date of switching over i.e. 03.08.06 as contained in semi finished and finished goods lying in stock on the said date. As a result of audit objection, it was found that the RG -1 register for the finished products reflected nil stock and as such Revenue entertained a view that credit of inputs contained in finished goods was wrongly claimed by the assessee.

(3.) ON appeal against the above order, the assessee contended that the inputs were lying in their stock either as such or as contained in semi finished and finished goods. They argued that the finished goods were not reflected in their records as the same were part of work in progress and to show them as finished goods was a mistake on the part of their clerk. They also pleaded that the demand is barred by limitation in as much as the entire facts were in the knowledge of the Revenue.