Decided on March 26,2015



R. Periasami, Member (T) - (1.)THE appellants filed miscellaneous applications for change of cause title of the company from UMS Radio factory Limited to UMS Technologies Ltd. They have produced a certificate of incorporation issued by the Registrar of Companies, Coimbatore dated 21.10.2005. Accordingly, change of cause title from UMS Radio Factory Limited to UMS Technologies Limited is allowed. Miscellaneous applications are disposed of. After dispensing miscellaneous applications the appeals are taken up for disposal.
(2.)BOTH the appeals are arising out of a common order in appeal and common adjudication order. The brief facts of the case are that the appellants are registered with the Central Excise for manufacture of electronic items such as antenna, booster, stabilizer etc. They have two units i.e., unit -I and unit -II both are located in two different premises at Coimbatore. Unit -I imported five machines during the year 1997 -1999, two in 1997 and three in 1999. They duly filed intimation under 57(1) before purchase and receipt of the machines on 05.08.97 and 24.08.99 respectively and intimated shifting these machines to their unit -II. They have not availed the capital goods credit. The machines were used in Unit -II for carrying out job work for unit -I till 15.11.97 -23.07 -99 and 30.08.99 respectively. Subsequently, unit -II returned these five machines to unit -I in July -99 and August -99 and unit -I took credit amounting to Rs. 29,34,781/ - on the CVD paid. These machines were once again shifted to unit -II after reversal of the entire credit. The department issued show cause notice dated 2.9.2004 demanding irregular availment of credit and also proposal for penalty under 123Q and 209A.
The adjudicating authority in his order dated 29.12.2004 disallowed the credit and also imposed equivalent penalty on unit -I under Rule 173Q, and imposed penalty of Rs. 6,00,000/ - on unit -II. Aggrieved by this order the appellant preferred an appeal and the lower appellate authority in his impugned order rejected the appeal of the first appellant and modified and reduced the penalty from Rs. 6,00,000/ - to Rs. 1,00,000/ - on the second appellant.

(3.)HEARD both sides.

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