IN RE: TIRUPATI INK LTD. Vs. STATE

JUDGEMENT

(1.) THESE proceedings were initiated after filing of appeal No. 149 -CE/APPL/Knp/2013 by M/s. Tirupati Ink Ltd., 188 -B, Dada Nagar, Kanpur (hereinafter referred to as the appellant) having Central Excise Registration No. AAACS2222FEM005, against the order -in -original No. 07/ADC/C.Ex/2013, dated 18 -3 -2013 passed by the Additional Commissioner, Central Excise, Kanpur. The appellant is engaged in the manufacture of printed ink or drawing ink and other inks, whether or not concentrated or solid printed ink, Titanium Oxide, Titanium dioxide classifiable under Chapter Heading Nos. 3215 11 90, 2823 00 10 and 2830 00 10 respectively of the First Schedule to the Central Excise Tariff Act, 1985. The appellants are also availing the Cenvat credit facility as per the provisions of the Cenvat Credit Rules, 2004. Briefly stated the facts of the case is that the appellant had a unit in the name and style of M/s. Tirupati Inks Ltd. situated at A -1/33, Dada Nagar, Kanpur, which was destroyed due to a fire incident on 21 -3 -2011, which was duly intimated to the Range Officer, Central Excise Range -I, Kanpur vide letter dated Nil by M/s. Tirupati Inks Ltd., A -1/33, Dada Nagar, Kanpur. The appellant installed and commissioned another factory in the name and style of M/s. Tirupati Inks Ltd., 188 -B, Dada Nagar, Kanpur and started production from September, 2011 and transferred the unutilized Cenvat credit of Rs. 5,50,705/ -lying in the books of M/s. Tirupati Inks Ltd. A -1/33, Dada Nagar, Kanpur. On the issue the department issued the show cause notice C. No. V(15)Off/ADJ/123/2012/11519, dated 3 -9 -2012 asking the party to show cause as to why irregular Cenvat credit of Rs. 5,50,705/ - availed by them should not be recovered under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A of Central Excise Act, 1944 along with interest under Section 11AA of the Act ibid and why penalty should not be imposed under Rule 15 of Cenvat Credit Rules, 2004 and under Rule 25 of Central Excise Rules, 2002 read with Section 11AC of the Act ibid. The said show cause was decided by the ld. adjudicating authority by disallowing the Cenvat credit of Rs. 5,50,705/ - under Rule 14 of the Cenvat Credit Rules, 2004 read with the Section 11A of Central Excise Act, 1944. The interest was also confirmed under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AA of the Act. A penalty of equal amount was also imposed under Rule 15 of Cenvat Credit Rules, 2004 and under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Act.

(2.) I have carefully gone through the case records and submission made by the appellant in appeal and during the course of personal hearing held on 1 -6 -2015 and attended by ld. Advocate Shri Amit Awasthi.

(3.) I find that Rule 10 of Cenvat Credit Rules, 2004 reads as under :