9911796707
TMI Blog2009 (8) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... . As soon as he recovered from sickness, the appeal was filed on 24th June, 2009. In view of the fact that the concerned officer was sick and was admitted in the hospital, we condone the delay of 63 days in filing the appeal and proceed to hear the stay application. 2. The learned advocate for the appellants submits that, there are two major demands involved in the matter; first one relates to reversal of credit of duty taken on molasses used in the manufacture of rectified spirit and this amount is Rs. 25,48,951/- and in the second issue, duty demand of Rs. 20,29,755/- has been confirmed on the ground that molasses were transferred to another company without the permission of the Department. Further, penalty has been imposed on the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue, he submits that, because of shortgage of storing space, they had stored the molasses outside the factory and he fairly admits that permission of the Assistant Commissioner, as required under Rule 8 of Cenvat Credit Rules, had not been obtainted before storing the same outside the factory premises. However, he submits that, not a drop of molasses can be removed without obtaining the permission of the State Excise Authorities and in this connection he drew our attention to the accounts maintained by them where the Excise Inspector s signature is required every time when molasses is cleared. He also submitted that, permission has been given by the Central Excise Department post facto. It is his submission that, as per Rule 8 for confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hod can be followed or not is also in dispute and we also find considerable force in the arguments advanced by the learned advocate about the applicability of Rule 3(5) of Cenvat Credit Rules. Further, even though considerable time was spent in adoption of FIFO method, it was not possible to reach conclusion. Further, we find a strong prima facie case in favour of the appellants in respect of the demand of more than Rs. 20 lacs made for contravention of Rule 8 of the Cenvat Credit Rules, 2004. The appellants have deposited more than Rs. 26 lacs which covers the duty amount of more than Rs. 25 lacs confirmed in respect of molasses used in the manufacture of rectified spirit, treating the same as sufficient for the purpose of Section 35F of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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