HENKEL INDIA LTD. Vs. CCE

JUDGEMENT

(1.) This is an appeal filed by M/s. Henkel India Ltd. (HIL), against an order of the Commissioner of Central Excise demanding an amount of Rs. 8,79,757/ - from them under Rule 14 of the Cenvat Credit Rules, 2002 (CCR), read with proviso to Section 11A(1) of the Central Excise Act, 1944 (the Act), demanding interest of Rs. 1,05,150/ - on the above amount under Rule 14 of CCR read with Section 11AB of the Act and imposing a penalty of Rs. 8,97,355/ - on MIL under Rule 15(2) of CCR read with Section 11AC of the Act.

(2.) The facts of the case are that HIL engaged in the manufacture of detergents, soaps and cakes had wound up its operations at the premises situated at No. 69 & 70 in Southern Venue, Industrial Estate, Ambattur on 13.09.04 and surrendered its central excise registration certificate on 01.10.04. On an inspection of the records of HIL subsequently, it was discovered by the authorities that HIL had removed the stock of credit availed inputs when the factory was leased out to M/s. Henkel Spic India Ltd. (HSIC) on 01.10.04 without remitting the credit relatable to the stock of inputs to the Government. Adjudicating a Show Cause Notice dated 01.06.06 issued to HIL invoking larger period of limitation, the Commissioner found that the appellants had removed inputs without paying back the credit availed to the exchequer when the factory was leased out to HSIL. HIL had suppressed the fact of removal of inputs to the lessee of the factory, HSIL and had not paid back the credit due to the exchequer. The impugned order came to be passed by the Commissioner on the above finding.

(3.) The Ld. JCDR reiterates the reasoning and finding contained in the impugned order.