LAWS(CE)-2013-6-44

ARISTO EXPORTS Vs. COMMISSIONER OF CENTRAL EXCISE, DAMAN

Decided On June 13, 2013
Aristo Exports Appellant
V/S
Commissioner Of Central Excise, Daman Respondents

JUDGEMENT

(1.) THIS appeal is directed against order -in -appeal No. CS/249/DMN/NDMN/2011 -12, dated 22 -3 -2012.

(2.) THE facts of the case in brief are that M/s. Aristo Exports, Daman (the unit) is engaged in the manufacture of Plastic Household Articles, Crates and writing instruments falling under Chapter Headings of 39 and 96 Central Excise Tariff Act, 1985 and hold Central Excise registration for the same. The unit has availed the facility of Cenvat credit under Cenvat Credit Rules, 2004. During the course of CERA audit, it was observed by the audit officers that the inputs viz. PP REPOL supplied by M/s. Reliance Industries Ltd., Jamnagar were directly sent to M/s. Aristo Plast Enterprise Pvt. Ltd, Palghar, Maharashtra, (Aristo Plast for short) for job work. It was noticed that the unit neither issued Annexure -II challan nor received the goods back from the job worker Aristo Plast as there was no evidence to prove the same. The unit was entitled to take Cenvat credit on these goods only on the receipt of the same from job work. As such the Cenvat credit of Rs. 1,57,308/ - on these inputs invoices were irregular.

(3.) SHOW cause notice was issued for raising a demand of Rs. 1,57,308/ - along with interest read with Cenvat Credit Rules and also for imposition of penalties on the appellant. Another show cause notice was also issued for utilisation of excess Cenvat credit wrongly availed. The said show cause notice was contested by the assessee on merits before the adjudicating authority. Adjudicating authority after following due process of law, confirmed the demands with interest and also imposed equivalent amount of penalties. Aggrieved by such an order appellant preferred an appeal before the first appellate authority. The first appellate authority also did not agree with the contentions raised by the appellant and upheld the order -in -original in toto. Hence this appeal.