9911796707
TMI Blog2007 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ling the facility of modvat under Rule 57A of Central Excise Rules, 1944. For the purpose of export, they were obtaining the inputs for manufacture of such goods for export, under the provisions of Chapter X in terms of Rule 192 of Central Excise Rules, 1944 without payment of duty. The export order was cancelled, thus making their stock of inputs and raw materials received under bond as surplus. Show cause notice dated 29-4-1999 was is sued to the appellant demanding duty of Rs. 1,93,840/- on such surplus raw materials on which duty became payable but, was not paid by the appellant. Penalty and interest were also proposed in the show cause notice. The adjudicating authority confirmed the demand and imposed penalty and also levied interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs of the lower authorities and submits that it was for the appellant to bring to the notice of the authorities that they have not utilized the inputs for the purpose it was intended. 5. Considered the submissions made by both sides and perused the records. The facts of the case are not in dispute. It is an admitted position that the appellant received the inputs under Chapter X without payment of duty and were consuming the same for the purpose of manufacturing of goods for export. It is also an admitted position that the said inputs could not be utilized for the manufacturing of export goods due to cancellation of the order. It is undisputed that the said inputs which were received in the factory premises of the appellant were consumed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmediately pay the duty leviable on such goods. It further provides that the concession may be withdrawn if a breach of the rules committed by the applicant, his agent or any person employed by him. In the event of such breach, power is given for forfeiture of the security deposited under Rule 192 and for confiscation of the excisable goods and all goods manufactured from such goods in store at the factory. In other words, Rule 196 deals with a situation of withdrawal for a concession. If any concession has been wrongly or illegally availed Rule 196 permits the proper officer to demand payment of duty leviable on the concerned goods. 35. Section 11(A) on the other hand deals with recovery of dues not levied or not paid or short paid or er ..... X X X X Extracts X X X X X X X X Extracts X X X X
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