9911796707
TMI Blog2011 (7) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the products - Since there is clear violation of utilization of credit contrary to the debarment orders issued under the Central Excise Rules, held that the respondent is liable to penalty - Decided against the assessee. - 1572 of 2006 - Final Order No. 587/2011-EX(PB) - Dated:- 6-7-2011 - Mr. Justice R.M.S.Khandeparkar, Mr.M.Veeraiyan, JJ. Present for the Appellant: Shri R.k.Verma, DR Present for the Respondent: Shri R.P.Jindal, Consultant PER: M.VEERAIYAN This is an appeal by the department against the order of the Commissioner (Appeals) No. 16/CE/Appl/DLH-IV/2006 dt.15.2.06. 2 Heard both sides. 3 The respondents are engaged in the processing of cotton, manmade and hosiery fabrics falling under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e original authority. Hence, the department is in appeal. 4. Learned DR submits that due to default in payment of duty, the provisions of Rule 8 of Central Excise Rules are attracted and debarment orders were validly issued and during the period of debarment the respondents could not have utilized the credit and therefore, he seeks setting aside the order of the Commissioner (Appeals) and restoring the order of the original authority. 5 Learned Advocate for the respondents submits that the treatment to the deemed credit is not the same as treatment for other credit available in terms of Rule 3 of Cenvat Credit Rules. The credit becomes available for utilization only at the time of clearance of final products and is proportion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... double payment of duty by the respondents. Therefore, we allow the credit to be adjusted towards dues at the time of clearances of final products, we direct the respondents to pay interest for the period of the months in each case. In other words, once the interest is paid, the credit denied shall stand restored and regularized towards duty due at the time of clearance of the products. Since there is clear violation of utilization of credit contrary to the debarment orders issued under the Central Excise Rules, we hold that the respondent is liable to penalty. 7. Considering the facts and circumstances of the case, while restoring the penalty imposed by the original authority, we reduce the penalty to Rs.1 lakh only. 8. The appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
