(Arising out of Order-in-Appeal No. YDB/45/RGD/2011 dated 21.1.2011 passed by Commissioner of Central Excise (Appeals), Mumbai-II)
Brief of the case:
The CESTAT Mumbai in the case of Precision Metals vs. CCEx held that when there is no allegation regarding fraud, willful misstatement, suppression of fact which are required as per Rule 15(2) read with Section 11AC of the Central Excise Act , then imposition of penalty by the department is wrong and illegal.
Facts of the case:
- The assessee is engaged in the manufacture of iron and steel products falling under Chapter 73 of the Central Excise Tariff Act, 1985 and is availing and utilizing credit of duty paid on inputs and capital goods as well as credit of service tax paid on input services.
- The assessee also used to export the manufactured goods to foreign countries as per the purchase order placed by foreign customers as per the terms and conditions of the agreement entered into between them. As per the terms and conditions, the cost of transportation is borne by the assessee who thereafter take the Cenvat credit on reverse charge basis.
- During the course of departmental audit, the credit admissibility was objected by the assessee as the credit of services consumed post place of removal is not admissible under the Cenvat Credit Rules, 2004.
- Adjudicating authority passed an order confirming the demand, interest and penalty. Commissioner (Appeals) set aside the interest but confirmed the demand and penalty.
- Aggrieved assessee is in appeal before tribunal against the penalty confirmed by the Commissioner (Appeals).
Contention of the Assessee:
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