ASHOK LEYLAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE facts of the case are that the appellants imported 500 sets of gear box vide Bill of Entry No. HD0101684, dated 10 -2 -1995. The said consignment along with the bill of entry was received at the appellant's Bhandara factory on 21 -3 -1996 and the appellant availed credit under RG -23A Part II on 28 -3 -1996. A show cause notice was issued demanding the credit taken and proposing to impose penalty for violation of Rule 57G(5) of the Central Excise Rules, 1944. The demand was confirmed along with penalty of Rs. 15,00,000/ -. On appeal before the Commissioner (Appeals), the demand was upheld but the penalty was reduced to Rs. 2.5 lakhs. The case had another round of litigation after CESTAT remanded the matter and in the second round of litigation, the amount mentioned above and the penalty have been confirmed. Heard both sides.

(2.) RULES 57G(3) and 57G(5) are relevant for the present dispute, which are reproduced below: - -

(3.) THE learned counsel has also quoted another judgment of this Tribunal in the case of CCE, Chennai -III v. Ford India Ltd. reported in : 2012 (284) E.L.T. 202 (Tri. -Chennai), wherein the Tribunal has taken the view that the time -limit of six months in availing the credit has been introduced with the sole objective of avoiding the evil of taking the credit in respect of inputs which have been cleared by the input manufacturer more than six months back.