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TMI Blog2003 (11) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Excise Rules, 2002. The application by Kamleshkumar Goel, its managing director, is for waiver of penalty of Rs. 5 lakhs. 2. The assessee was engaged in the manufacture of desalination plants. It cleared such plants either on payment of duty or as supply stores to the ships of Indian navy or coast guard in terms of entry 3 of the Table to Notification 64/95. It availed of the Modvat credit procedure (latter Cenvat Credit Procedure). It is stated that it was maintaining separate accounts for four types of inputs for the goods manufactured by it which are common. Notice issued to it demanded duty in terms of Rule 57CC for the period up to 30-3-2000, in terms of Rule 57AD from 31-3-2000 to 30-6-2001, Rule 6 of the Cenvat Credit Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from June, 2001 onwards in the manufacture of the exempted product. 4. In terms of the explanation (ii) of sub-rule (3) of Rule 6 of the Cenvat Credit Rules, 2002, if the manufacturer fails to pay amount payable by application of sub-rule (3) of Rule 6 it shall be recovered along with interest in the manner provided in Rule 12. Rule 12 is for recovery of Cenvat credit. In the light of this rule, the position prevailed earlier that, in the absence of any machinery to recover the sum payable under Rule 57CC and since that amount was neither duty nor credit, it could not be recovered would prima facie not hold good. We are also unable to, on the fact of it, say that the Supreme Court s decision in Chandrapur Magnet Wires Pvt. Ltd. v. CCE a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority shall be deemed to be valid. Neither of these provisions, in our view, provides retrospective application to the recovery provisions that we are concerned with. On the other hand, Rule 3 itself provides that the manufacturer for taking Cenvat credit of various kinds of specified duty paid on the inputs or capital goods received in the factory on or after 1-3-2001. The provisions contained in Rule 6(3) therefore will not apply to the earlier period. 7. On this prima facie therefore we direct the applicant to deposit Rs. 27 lakhs, which relates to the amount payable in terms of Cenvat Credit Rules, 2002, within two months from today upon which we waive deposit of the remaining amount of duty and penalty. We also waive deposit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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