COMMISSIONER OF C. EX. Vs. RAGHAV ALLOYS LTD.

JUDGEMENT

(1.) The Revenue has impugned the order (Annexure A-4) 2009 (242) E.L.T. 124 (Tribunal) passed by Customs, Excise and Service Tax Appellate Tribunal (for short "the Tribunal") vide which the Appeal filed by Department was dismissed and it was held that the Respondent has paid correct amount of duty.

(2.) The Respondent is engaged in the manufacture of Non-Alloy Steel Ingots. The Respondent in the year of 1994 purchased an Induction Furnace and took credit of Rs. 1.30 Lac i.e. equal to duty paid on the said Induction Furnace. The Respondent used the said machinery till 2003 and sold the same in May' 2003 after payment of duty of Rs. 32,000/- i.e. 16% on the sale price Rs. 2,00,000/-. The Respondent paid duty on the transaction but the Revenue formed an opinion that Respondent should pay duty equal to CENVAT Credit availed at the time of purchase of the machinery. On the basis of this opinion, the Revenue issued a Show Cause Notice raising the demand of differential amount of credit i.e. Rs. 98,000/-. The Revenue also sought to impose penalty in the said Show Cause Notice.

(3.) The Adjudicating Authority i.e. Deputy Commissioner confirmed the demand and further imposed equal amount of duty under Section HAC/Rule 13 of the Rules. The Respondent preferred an Appeal before the Commissioner (Appeals) and Commissioner (Appeals) relying upon Board Circular dated 1-7-2002 allowed Appeal of the Respondent. The Revenue preferred an Appeal before the Tribunal and the Tribunal ex-parte allowed Appeal of the Revenue [2008 (224) E.L.T. 595 (Tri. - Del.)]. The Respondent-Assessee approached this Court and this Court vide Order dated 19-8-2008 set aside Tribunals' Order and directed the Tribunal to decide Appeal afresh after hearing the Respondent.