9911796707
TMI Blog2008 (4) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... d from payment of duty. The appellants manufactured packaging materials like jars, tins, etc. used for packing of refined edible oils. The assessee availed Cenvat credit on the inputs i.e., HDPE granules and tinplates. After an investigation, a show cause notice was issued to the appellants directing them to reverse 10% of the amount of value of the exempted products cleared by them during the period September 2004 to February 2005 for utilizing duty paid inputs for the manufacturing of exempted final products without maintaining separate books of accounts. The appellants contested the show cause notice on various grounds. One of the grounds that duty, if any, is liable to be paid only on the plastic jars, which comes into existence in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir case as tins and jars manufactured and captively consumed will not be entitled to Notification No. 67/95 dated 16-3-1995 and hence duty was required to be paid on the same and hence the inputs viz., tin plates and plastic granules have been used in the manufacture of dutiable products. Therefore, the demand of Rs. 5,48,464/- has been rightly confirmed against the appellants and the same is upheld. There is therefore no merit in the stand of the appellants . 4. By holding so, the Commissioner (Appeals) upheld the order-in-original vide which penalty of equivalent amount was imposed on the appellants. Hence, this appeal. 5. Ld. Counsel appearing on behalf of the appellant submits that they have paid an amount of Rs. 4,38,000/- against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellants had availed Cenvat credit on the HDPE granules and tin plates, which were used by them for manufacture of plastic jars md tins. It is also undisputed that the said plastic jars and tins were also consumed by them for packing edible oil i.e. double filtered ground nut oil. The said final product i.e., double filtered groundnut oil was exempted from payment of duty. It is also undisputed that the appellant had not maintained separate inventory for consumption of the inputs in the manufacture of exempted products. This would indicate that the Cenvat credit availed on the HDPE granules and the sheets, which were used for the manufacture of plastic jars, which ultimately were used in the manufacturing of exempted products, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods in respect of which any contravention has been committed, or two thousand rupees, whichever is greater. (2) In a case, where the CENVAT credit in respect of input or capital goods has been taken or utilized wrongly on account of fraud, wilful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of the Excise Act or the rules made thereunder with intention to evade payment of duty, then the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Excise Act. (3) If any person, takes CENVAT credit in respect of input services, wrongly or in contravention of any of the provisions of these rules in respect of any input service, then, such person, shall be l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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