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Inventia Healthcare Pvt. Ltd V/S Commissioner of Central Excise, Mumbai III


Company & Directors' Information:- INVENTIA HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239MH1985PTC037597

Company & Directors' Information:- R G S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110PB2004PTC047381

Company & Directors' Information:- R G S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110CH2004PTC027689

Company & Directors' Information:- P. H. HEALTHCARE PRIVATE LIMITED [Active] CIN = U33110MH2010PTC208651

Company & Directors' Information:- B G P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232GJ2007PTC050417

Company & Directors' Information:- D R HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110GJ2006PTC048008

Company & Directors' Information:- M J HEALTHCARE PRIVATE LIMITED [Active] CIN = U93090PN2008PTC132455

Company & Directors' Information:- S J HEALTHCARE PRIVATE LIMITED [Active] CIN = U85190MH2005PTC153435

Company & Directors' Information:- G J HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110PB1998PTC021049

Company & Directors' Information:- I M HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232CH2010PTC032454

Company & Directors' Information:- K G HEALTHCARE LIMITED [Active] CIN = U85110TZ1995PLC006402

Company & Directors' Information:- C S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110GJ2012PTC070018

Company & Directors' Information:- M M HEALTHCARE LIMITED [Active] CIN = U74899DL1988PLC034339

Company & Directors' Information:- A L B HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85110UP2002PTC026786

Company & Directors' Information:- S B M HEALTHCARE (INDIA) PRIVATE LIMITED [Active] CIN = U33112DL2005PTC140703

Company & Directors' Information:- S A HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85100OR2014PTC018365

Company & Directors' Information:- AND HEALTHCARE LIMITED [Active] CIN = U51909PB2017PLC046446

Company & Directors' Information:- D. S. HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232WB2007PTC115617

Company & Directors' Information:- B N HEALTHCARE PRIVATE LIMITED [Active] CIN = U15412AS2000PTC006258

Company & Directors' Information:- P AND B HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U24230GJ2013PTC075056

Company & Directors' Information:- M M D HEALTHCARE LIMITED [Active] CIN = U65921CH1996PLC017595

Company & Directors' Information:- A AND R HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239DL1999PTC102404

Company & Directors' Information:- K. N. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85320RJ2018PTC061003

Company & Directors' Information:- R F B HEALTHCARE PRIVATE LIMITED [Active] CIN = U85190DL2021PTC384643

Company & Directors' Information:- M S HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239MH2001PTC130893

Company & Directors' Information:- G A S HEALTHCARE PRIVATE LIMITED [Active] CIN = U74999BR2018PTC038700

Company & Directors' Information:- L. J. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100HR2019PTC078493

Company & Directors' Information:- J. R. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85191UP2013PTC054982

Company & Directors' Information:- M A P H HEALTHCARE PRIVATE LIMITED [Under Process of Striking Off] CIN = U85100WB2010PTC144870

Company & Directors' Information:- N. C. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85191DL2007PTC164437

Company & Directors' Information:- N Y HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230GJ2010PTC063348

Company & Directors' Information:- H 4 HEALTHCARE PRIVATE LIMITED [Active] CIN = U15100MH2021PTC353283

Company & Directors' Information:- D. B. HEALTHCARE PRIVATE LIMITED [Active] CIN = U33205MH2014PTC253439

Company & Directors' Information:- K S V HEALTHCARE PRIVATE LIMITED [Active] CIN = U85195HR2011PTC043767

Company & Directors' Information:- N M HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110MH2000PTC125392

Company & Directors' Information:- T K HEALTHCARE (INDIA ) PRIVATE LIMITED [Strike Off] CIN = U85190MH2003PTC139346

Company & Directors' Information:- A R HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110CH2013PTC034820

Company & Directors' Information:- I P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239DL2003PTC121211

Company & Directors' Information:- A 2 Z HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100DL2010PTC208860

Company & Directors' Information:- K. D. HEALTHCARE INDIA PRIVATE LIMITED [Strike Off] CIN = U85100DL2015PTC281658

Company & Directors' Information:- A P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230MH1999PTC122520

Company & Directors' Information:- K Y O S HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U51397HP2010PTC031280

Company & Directors' Information:- Z F HEALTHCARE PVT. LTD. [Active] CIN = U29295MH2006PTC164255

Company & Directors' Information:- K. B. B. K. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110RJ2013PTC041465

Company & Directors' Information:- T.H.E. HEALTHCARE COMPANY PRIVATE LIMITED [Strike Off] CIN = U33111MH2012PTC229451

Company & Directors' Information:- J S B HEALTHCARE PRIVATE LIMITED [Active] CIN = U74120MH2013PTC248848

Company & Directors' Information:- J S D HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U74120UP2011PTC046578

Company & Directors' Information:- S V T HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85100TZ2009PTC015287

Company & Directors' Information:- A N S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100HP2011PTC031745

Company & Directors' Information:- J M HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230CH2007PTC030943

Company & Directors' Information:- P R HEALTHCARE PRIVATE LIMITED. [Strike Off] CIN = U24231DL2003PTC120123

Company & Directors' Information:- R S M HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U24232DL2005PTC136255

Company & Directors' Information:- M H HEALTHCARE PRIVATE LIMITED [Active] CIN = U74999DL2016PTC289311

Company & Directors' Information:- N T HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100DL2012PTC241304

Company & Directors' Information:- R A HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85190DL2009PTC188221

Company & Directors' Information:- G & G HEALTHCARE PRIVATE LIMITED [Active] CIN = U51397HR2015PTC057293

Company & Directors' Information:- P D HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230GJ2004PTC045131

Company & Directors' Information:- L. V. G. HEALTHCARE PRIVATE LIMITED [Active] CIN = U24233GJ2006PTC047749

Company & Directors' Information:- S H G HEALTHCARE PVT LTD [Strike Off] CIN = U85110WB1989PTC047231

    Appeal Nos. E/89448, 89449, 89872/13 (Arising out of Order-in-Appeal No. SDK/137/MUM-III/2013-14 dated 21.08.2013, SDK/138/MUM-III/2013-14 dated 21.08.2013 and No. SDK/178/MUM-III/2013-14 dated 27.09.2013 passed by Commissioner of Central Excise (Appeals), Mumbai)

    Decided On, 04 December 2017

    At, Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Mumbai

    By, THE HONORABLE JUSTICE: ARCHANA WADHWA
    By, MEMBER

    For Petitioner: Abhijeet Saha, Advocate And For Respondents: Manoj Kumar, Asst. Commr. (AR)



Judgment Text


1. All the three appeals are being disposed of by a common order as the issue involved in all of them is identical.

2. After hearing both sides, duly represented by Shri Abhijeet Saha, learned Advocate appearing for appellant and Shri Manoj Kumar, Authorised Representative for Revenue, I find that the appellant, who are in engaged in the manufacture of medicine shifted their factory from Thane Unit to Ambernath Unit. As the appellant was working under Cenvat Scheme in their Thane factory, the capital goods on which credit had been availed by appellant were also cleared to their Ambernath factory. It is seen that most of the items were cleared on payment of duty and credit was taken at their Ambernath factory. In some cases, while removing the capital goods, the appellant did not pay any duty, which was pointed out to them by subsequent audit by Revenue and they paid the duty along with interest and availed the credit at their new unit at Ambernath. In one of the cases, D.G. set, which was installed at Thane, but was not shifted to their unit at Ambernath, inasmuch as the same was fixed to earth. The appellant did not pay any duty on the same. The audit objected to that on the ground that as the appellant had availed credit in respect of the D.G. set and has surrendered their licence at Thane, they are under legal obligation to reverse the CENVAT credit so availed by them. The appellant agreed to the above proposition and accordingly paid duty of excise on the D.G. set also along with interest.

3. In the above scenario, proceedings were initiated against them for imposition of penalty, resulting in passing the present impugned orders imposing penalties. The challenge in all the three appeals is to imposition of penalties only.

4. The contention of the learned Advocate is that while as shifting their factory, some of the capital goods inadvertently were left out and did not suffer duty. However he submits that the entire exercise is Revenue neutral inasmuch as what was paid by Thane Unit at the time of clearance of capital goods, was available as credit to their Ambernath unit. Similarly in respect of D.G. set, he explains that inasmuch as the same was not being shifted, they entertained a bona fide belief that there was no requirement to either reverse the credit availed in respect of the said D.G. set or to pay any duty. Though they are still of the view that inasmuch as D.G. Set was not being cleared from their factory there was no need to pay any duty, but they paid duty along with interest so as to avoid litigation. In such a scenario no mala fide intention can be attributed to them so as to impose penalty.

5. On the other hand, Revenue's contention, duly represented by learned Authorised Representative is that inasmuch as the appellant had themselves cleared some of the capital goods on payment of duty, clearance of other capital goods without payment of duty is with the mala fide intention. The appellant was aware of the entire legal position and should have discharged their duty liability accordingly.

6. After carefully considering the submissions of both sides, I find that admittedly what was paid by Thane Unit was available as credit to their Ambernath unit, thus leading to a Revenue neutral situation. If that be so, the appellant cannot be held guilty of any mala fide with the intention to evade payment of duty. As such I am of the view that initiation of penal provision against the appellant was neither warranted nor justified. Otherwise also I find that the capital goods were removed in 2008, the differential duty as pointed out by the Revenue, was paid in 2010. In addition interest which is also in the nature of penal provision was also paid by the appellant. Show-cause notice for imposition of penalty was issued after a gap of 2 years i.e. 16.04.2012. This only reflects upon the uncertain mind of Revenue and is also hit by the provision of law

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under Section 11A (2B) of the Central Excise Act, 1944, which is to be effect that in case an assessee pays duty along with interest, proceeding should have been held to be finalized by Revenue and no further proceeding should be initiated. Inasmuch as I have already held that there cannot be any mala fide intention on the part of the assessee, I set aside the penalty imposed on the appellant and allow all the three appeals to that extent.
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