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TMI Blog2007 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue by framing three substantial questions of law and prayed to set aside the order of the Tribunal by answering the substantial questions of law in favour of the revenue urging various legal contentions. 2. The brief facts are stated as hereunder : M/s. Bharath Fritz Werner Limited, Peenya, Bangalore are the manufacturers of CNC machines and milling machines falling under Chapter Heading No. 84.57 of the First Schedule to the Central Tariff Act, 1985. The Officers of the Directorate General of Central Excise Intelligence, Bangalore Unit has observed that the assessee was availing the benefit of Cenvat credit on all inputs which are used in the manufacture of various machines and their parts, tools and accessories. It was also furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11A of the Central Excise Act, 1944 was invocable for demanding the irregular credit availed for the extended period of five years and also interest and penalty are to be charged on the said duty amount to be levied upon the respondent. In that regard, a show cause notice No. 44/2003-04, dated 27-2-2004 was issued and the same was adjudicated by the Additional Commissioner of Central Excise, Bangalore III Commissionerate vide OIO No. 9/2004, dated 29-7-2004. The duty demands of Rs. 21,85,946/- were confirmed by the said order under the erstwhile Rule 57H/57-I/57U of the Central Excise Rules, 1944 and Rule 12 of Cenvat Credit Rules, 2001-2002 Rules of 2001 and 2002 read with proviso to sub-section (1) of Section 11A of the Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit by using the captively consumed machines which are used for manufacture of goods on job work basis and in respect of the such final products wherein the principal manufacturer makes payment of duty but the job worker namely the assessee who undertakes the job work takes credit using the captively consumed machines for doing such job work?" 3. Shri. Devadass, learned Senior counsel for the appellants contended that the Appellate Tribunal's order is a cryptic one. The finding of the Tribunal in setting aside the concurrent finding of fact with reference to the excess duty penalty and the interest levied after affording opportunity to the respondent is based on the relevant provisions of the Rules of 2001 and 2002 read with proviso t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel Shri. Ravi Shankar who has entered caveat for respondent sought to justify the order placing reliance upon the decision of Escorts Ltd. v. CCE, Delhi reported in 2004 (171) E.L.T. 145 (S.C.) = 2004 (64) RLT 227 (S.C.) in support of his submission that the Apex Court in the said case has held inputs used in the manufacture of parts, which are intermediate products for tractors are eligible for Modvat credit even if such parts are cleared without payment of duty to another factory on the same appellant in terms of Notification No. 217/80-C.E. Placing reliance by the Rule 57C of 1944 Rules which Rules have no application to the case on hand and further rebutted the legal submission made by the learned Senior Counsel on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o answer the substantial questions framed in this Appeal. On the other hand, he contends that the said observations made in the said case with reference to the provisions of Rules of 1944 and provisions of the Central Excise Act would justify the correctness of the conclusions arrived at by the Tribunal in the case on hand. No doubt the Tribunal's order is a cryptic one, having regard to the legal position laid down by the Apex Court in Vikram Cement's case, it is stated by him that neither substantial questions of law as framed in this appeal or any other questions of law would arise for consideration of this Court in this Appeal. Therefore, he contends that the conclusions arrived at by the Tribunal in setting aside the finding of fact by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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