2007 (1) TMI 20

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..... y the Commissioner (Appeals), Central Excise, Surat-I filed by the assessee. The appellants herein viz. M/s. M.M. Silk Mills, Surat is engaged in the manufacture of man-made fabrics (processed) falling under Chapter heading No. 54.06 to the Schedule of the Central Excise Tariff Act, 1985. The appellant was availing the benefit of fortnightly payment as introduced in sub-rule (1) of Rule 8 of Centr .....

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..... ms of sub-rule (3) of Rule 8 of the said rules, he was eligible to clear the goods utilizing the deemed credit available for the clearance of the goods on payment of duty and accordingly he cleared the goods on payment of duty. Thereafter, the department issued another show cause notice dated 9-6-2003 proposing to recover Central Excise duty from PLA which were debited from deemed credit account a .....

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..... unds urged before the Tribunal by the appellants are the same which were urged before the Commissioner (Appeals). 5.On due consideration of the submissions made by both the sides and perusing the records, it is to be observed that the assessee's facility to pay monthly payment of duty in terms of Rule 8 was ordered to be forfeited inasmuch as there was delay in depositing the duty on fortnight ba .....

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..... e modvat credit against which the earlier discharge of duty effected was ordered to be re-credited to the modvat deemed credit register. The lower authority has totally ignored this aspect. A perusal of the show cause notice indicates that the assessee had failed to pay duty on due dates during 1st and 2nd fortnight of October, 2001, 2nd fortnight of November 2001 and had not paid duty during the .....

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..... rrent account would lead to conclude that the appellant had discharged the duty as required during the period of forfeiture. In this view no further duty demands would be called for. When there are no duty demands, the penalty as arrived is not called for. In view of the findings the Order of lower authority is hereby set aside. 6.The appeal is allowed. (Pronounced in Court on 19-1-2007)
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