2004 (10) TMI 391 - AT - Central Excise

Summary

Issues involved: Appeal against demand u/s 11D and Rules 57-I and 57-AD, interest, and penalty.

Demand u/s 11D:
The appellants contended that no demand u/s 11D could be confirmed as they did not charge duty from buyers, working under exemption Notifications, and the price was composite. The Tribunal found no evidence of duty collection, citing precedent. The impugned order confirming duty u/s 11D was set aside.

Demand under Rules 57-AH and 57-I:
The appellants reversed Modvat credit at 8% for inputs used in exempted goods, which was wrongly denied. After crossing the exemption limit, they paid duty and were entitled to credit on inputs. The Tribunal held they were entitled to the claim of Modvat credit post-exemption limit crossing. The demand under Rules 57-AH and 57-I was set aside.

Penalty and Interest:
Considering the circumstances, the Tribunal found no grounds for penalty or interest imposition on the appellants. The impugned order regarding penalty and interest was set aside. The appeal was disposed of accordingly.