Penalty justified for removal of Machinery without CENVAT reversal

The appellant company was engaged in the manufacture of Pharmaceutical Products classifiable under Chapter 30 of the Schedule to the Central Excise Tariff Act, 1985. The Central Excise officer during the course of visit, noticed that the appellant availed CENVAT credit on capital goods and shifted the machinery to their sister unit, which is also engaged in the manufacture of same final product. However, in order to avoid litigation, the appellant immediately reversed the credit along with interest at the instance of the Central Excise Officers. The Adjudicating

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