9911796707
TMI Blog2006 (5) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... yderabad. During hearing held on 16-5-2006, the applicant company was represented by Shri V.J. Sankaram, Advocate, while Revenue was represented by Shri D. Thilagar Joseph, Assistant Commissioner of Central Excise, Hyderabad-III Commissionerate, Hyderabad. 2. Briefly, the facts of the case are that the applicant company are manufacturers of bulk drugs falling under Chapter sub-heading of 2942 of the Central Excise Tariff Act, 1985. On 3-9-2003, Central Excise officers conducted searches at various places including factory and office premises, a few residential premises, godown and transporters premises, recovered certain records, seized some consignments of bulk drugs and conducted further investigation. Accordingly, the said SCN was issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries case reported in 2004 (176) E.L.T. 648 (Tri. - Bang.) and Sun Dye-Chem case reported in 2004 (175) E.L.T. 400 (Tri. - Del). 2.1 After hearing both the sides, it appears that the applicant is not entitled to full exemption benefit under Notification No. 8/2002 since they had availed Modvat credit, while paying normal rate of duty @ 16% on the same. For the year 2002-03 accounted value of clearance is Rs. 83 lakhs plus and unaccounted clearance of Rs. 79 lakhs plus. Similarly, for the year 2003-04 accounted clearance is Rs. 98 lakhs plus and unaccounted clearance of Rs. 47 lakhs plus. 2.2 As regards the benefit of concessional rate under Notification No. 9/2002 it is not possible to apply it for goods legally cleared even by re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be proceeded with under sub-section (1) of Section 32F of Central Excise Act, 1944. In view of the above, the applications of the co-applicants are also allowed to be proceeded with under Section 32F(1) ibid. Accordingly, Revenue shall work out the duty liability for the two years taking into account the following parameters :- i. The applicant shall be given benefit of concessional rate of duty under Notification No. 9/2002 with reference to unaccounted clearance only to the extent of the value of clearances not exceeding Rs. 1 crore (Whatever duty has been computed and paid and Modvat claimed with reference to the accounted clearance is not to be re-opened since consignees of such clearances have availed Cenvat credit). ii. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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