COMMISSIONER OF C. EX. Vs. MERINO INDUSTRIES LTD.

JUDGEMENT

(1.) THE Revenue has come up in appeal against the OIA No. MRT -EXCUS -002 -APP -53/13 -14, dated 24 -6 -2013 passed by the Commissioner (Appeals), Meerut, wherein the Commissioner (Appeals) has set aside the OIO No. 50/Addl. Commissioner/M -II/2012 -13, dated 12 -12 -2012 relying upon the decision of the Tribunal in the case of Zenith Machine Tools Pvt. Ltd. v. CCE, Belgaum : 2010 (255) E.L.T. 83 (Tri.) : 2010 (20) S.T.R. 554 (Tri.). The Additional Commissioner has denied Cenvat credit Rs. 25,78,578/ - under Rule 14 of Cenvat Credit, 2004 read with Rule 4(5)(a) of Cenvat Credit Rules, 2004 and Section 11(1) of Central Excise Act, 1944. Penalty of equivalent amount of Rs. 25,78,578/ - was also imposed on the respondent along with Interest. None present from the respondent side. Nor any adjournment application has been received. It is further noticed that two notices have been issued to the respondent on 23 -11 -2013 and 31 -12 -2013 for fixing the date of hearing on 18 -12 -2013 and 5 -2 -2014. Notice was also issued for hearing on 13 -6 -2014 i.e. today. When the matter was called today, again none present from the respondent side. It is observed that sufficient opportunity has been given to the respondent to appear before the Tribunal however they have chosen not to respond to the communications.

(2.) THE department did not accept the Order -in -Appeal passed by the Commissioner (Appeals). After due examination by the Committee of Chief Commissioners' appeal on following grounds has been filed.

(3.) I have examined the matter. On perusal of the order of the Commissioner (Appeals) as well as grounds of appeal taken by the department, I find that issue for consideration is whether, non -registered undeclared premises where alleged job work was undertaken without intimation to the department and where even capital goods have been removed from main unit to those premises without reversal of Cenvat credit, after lapse of 180 days, whether reversal of credit could be insisted upon them or not.