SECURIPAX INDIA PVT. LTD. Vs. CCE

JUDGEMENT

(1.) SECURIPAX India Pvt. Ltd. are engaged in the manufacture of excisable goods falling under Chapter 48 of the CETA Schedule, for which they obtained Central Excise registration on 20.3.2001. They are availing Cenvat credit facility in respect of their inputs. On 30.3.2001, they had taken Cenvat credit of Rs. 46,600 in respect of inputs which were not available in their registered factory premises. Another credit of Rs. 51,811 had been taken on inputs on 19.3.2001, i.e. prior to the date of Central Excise registration. The party had also taken Cenvat credit of Rs. 30,05,054 during the period March 2001 to February 2002 in respect of inputs which at the material time were stored outside the factory premises without prior permission of the jurisdictional Commissioner of Central Excise. All these credits were disallowed by the original authority, which also imposed a penalty of Rs. 31 lakhs on the party. The aggrieved party preferred appeal to the Commissioner (Appeals). The lower appellate authority upheld the decision of the lower authority in respect of the Cenvat credits of Rs. 46,600 and Rs. 51,811 but allowed the credit of Rs. 30,05,054 to the party. It also reduced the quantum of penalty to Rs. 50,000. In the assessee's appeal before us, they are aggrieved by the denial of Cenvat credits of Rs. 46,600 and Rs. 51,811 as also by the imposition of penalty. In the Revenue's appeal, the challenge is against the decision of the lower appellate authority in respect of the Modvat credit of Rs. 30,05,054. The appellant has also challenged the reduction of penalty.

(2.) WE have carefully examined the records and heard both sides. We shall examine the issues one by one.

(3.) IN the result, we uphold the decision of the Commissioner (Appeals) in respect of the Cenvat credit of Rs. 51,811 as well as the penalty of Rs. 50,000, and we set aside his order in relation to the Cenvat credits of Rs. 46,600 and Rs. 30,05,054. The impugned order shall stand modified accordingly. The assessee's appeal stands partly allowed. The Revenue's appeal -stands allowed in relation to the credit of Rs. 30,05,054.