CCE Vs. SAHAJ CERCHEM (P) LTD.

JUDGEMENT

(1.) REVENUE filed this appeal against the Order of the Commissioner (Appeals), whereby penalty of equal amount of duty of Rs. 97,969/ - was set aside.

(2.) AFTER hearing both the sides and on perusal of the records, it is seen that the respondent availed credit on M.S. Fabricated Structure and other accessories under the head of capital goods. The Central Excise Officers during the verification of the records, detected the availment of credit and on being pointed out by the said officers, the respondent reversed the credit of Rs. 97,969/ - on 18.04.2005. Thereafter, a show cause notice dated 7.4.2006 was issued proposing to appropriate the amount deposited by the respondent and to impose penalty. The Original Authority confirmed the demand of duty and appropriated the amount as deposited by the respondent. He also imposed penalty of equal amount under Rule 25 of the Central Excise Rules, 2002. The Commissioner of Central Excise (Appeals) set aside the penalty. Hence, the Revenue filed this appeal.

(3.) LD . Advocate reiterated the findings of the Commissioner (Appeals). He submits that the Tribunal in the case of Divi's Laboratories Ltd. v. CCE, Vishakhapatnam held that the credit is available on structural items. He fairly submits that they are not contesting the demand of duty, which they have already deposited at the time of verification of the records by the Central Excise Officers. He also submits that the show cause notice was issued about after one year of the reversal of the credit. He also submits that the respondent had not utilised the credit.