9911796707
TMI Blog2012 (6) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... re of ODS, SDS and rectified spirit. While ODS and SDS were dutiable, rectified spirit was chargeable to nil rate of duty and was thus an exempted final product. The department's allegation is that during the period of dispute i.e. during 10-5-2000 to 31-6-2002 period, though the appellant used common Cenvat credit availed input i.e. molasses in the manufacture of dutiable final products (ODS and SDS) and exempted final product (Rectified Spirit), in accordance with the provisions of Rule 57AD of Central Excise Rules, 1944. Rule 6(2) of Cenvat Credit Rules, 2001/2002, they did not maintain separate account and inventory of inputs meant for exempted and dutiable final products and, therefore, in respect of clearances of exempted final produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced by adding an explanation to Rule 6(3) Cenvat Credit Rules, 2001/2002/Rule 57AD(2) of Central Excise Rules, 1944 with retrospective effect by Section 82 of the Finance Act, 2005, that by virtue of the retrospective amendment, while the amount not paid could be recovered along with interest for the past period, penalty could not be imposed and in this regard he relies upon the judgment of Hon'ble Karnataka High Court in the case of CCE and ST LTU, Bangalore v. Bharat Electronics Ltd. reported in 2011 (267) E.L.T. 172 (Kar.) and also the judgment of this Tribunal in the case of CCE, Allahabad v. JHV Sugar Corporation Ltd. (Final Order No. 873/2009, dated 15-10-2009) [2010 (262) E.L.T. 540 (Tri.)] and that in view of this penalty would no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of Rule 57AD(2) of Central Excise Rules, 1944/Rule 6(3) of Cenvat Credit Rules, 2001/2002. Therefore, the provisions of Rule 57AD(2) of Central Excise Rules 1944/Rule 6(3) of Cenvat Credit Rules, 2001/2002 would be attracted. In this appeal, the appellant do not dispute their liability to pay the amount which, in fact has been paid by them. The dispute is about the interest and penalty. We are of the view that even though during the period of dispute, there was no provision for recovery of the amount payable under Rule 6(3) of Cenvat Credit Rules, 2001/2002/Rule 57AD (2) of Central Excise Rules, 1944 from an assessee who had not paid the same, since such a provision for recovery was introduced with retrospective effect only ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
