ALEMBIC LTD. Vs. CCE

JUDGEMENT

(1.) THESE two appeals are directed against the Order -in -Original No. 01//COMMR/VDR -II/MP/2007 -08 dt.22.06.2007 and 02/COMR/VDR -II/MP/2007 -08 dt. 22.06.2007. Appeal No. E/875/2007 is filed by M/s. Darshak Ltd. (Now known as Alembic Ltd.) while Appeal No. E/876/2007 is filed by M/s. Nirayu Pvt. Ltd.

(2.) SINCE in both the appeals the issue is common, they are being disposed of by a common order.

(3.) THE Ld. Counsel appearing for the Appellants has filed written submissions along with the judgments. He would submit that in the present case the facts which need consideration is that Tribunal in its order dt.12.07.2005 while confirming the demand on the Appellant also allowed the credit of such duty to the recipient units which are sister concerns of the Appellant as well as reduced the penalties finding the same to be too harsh in view of the fact that the clearances were recorded in private records. That it held that some penalty are to be imposed for clearances of goods in contravention of rules. The order dt.12.07.2005 clearly shows that the whole issue is revenue neutral and does not falls under the category of cases of evasion of duty on account of fraud, suppression willful misstatement so as to invite interest under section 11AB before 11.05.2001. He would further argue that even the Tribunal in its order dt.22.10.2007 allowed the introduction of additional ground among which one was of holding the entire exercise as revenue neutral which again shows that the Tribunal agreed with the grounds raised by the Appellant that the issue is revenue neutral. That it is undisputed that goods cleared to the sister concerns were used in manufacture of dutiable goods and the duty payment by the sister concern makes the whole situation revenue neutral. The Ld. Counsel cites following judgments to canvass his point of revenue neutrality and states that in such case no penalty under section 11AC and interest under section 11AB can be demanded from them: