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TMI Blog2007 (6) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... o, Member (J)]. After examining the records and hearing both sides, we are of the view that the appeal itself can be finally disposed of at this stage. Accordingly, after dispensing with pre-deposit, we take up the appeal. 2. The appellants are engaged in the manufacture of cotton yarn, polyester cotton yarn, polyester blended yarn etc. They are availing Cenvat credit facility also. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of this duty in their Cenvat account. Later on, the department issued show-cause notice dated 23-2-2006 asking the party to pay an amount of Rs. 12,09,545/- equivalent to the above Cenvat credit. The notice also demanded interest on the amount under Section 11AB of the Central Excise Act r/w Rule 14 of the Cenvat Credit Rules. It also proposed penalty on the party under Rule 15 of the Cenvat Cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... berty to utilize the goods in their normal activity, for which no law stipulated any requirement of prior permission from the department. Payment of the above duty with cess under Rule 6 of the relevant rules is an admitted fact. Upon such payment, the appellants became entitled to take Cenvat credit and accordingly they took the credit. The direction of the lower authorities to pay an amount equa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he input but for the exemption under Rule 19(2) r/w the Notification. Upon such payment of duty and cess on the input, the assessee became entitled to deal with the input in the ordinary course of business, unfettered by anything contained in the above rule or notification. Thus, they became entitled to take Cenvat credit of the duty and cess paid on the input, which they did lawfully. The demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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