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TMI Blog2017 (3) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... Pravin Sharma, Advocate for the appellants Shri Pawan Kumar Singh, (Supdt), A.R. for the Department Per Mr. Anil Choudhary The appellant is manufacture of P.U. foam and its products, is in appeal against Order-in-original No. 22/COMMISSIONER/N01DA/2008 dated 23.06.2008 passed by Commissioner, Customs Central Excise, Noida. 2. The issue in this appeal are that :- (i) Whether or not, Central Excise Duty of ₹ 250673/- involved on the stock allegedly found short is demandable/recoverable from the party under Section 11A of the said Act. (ii) Whether or not, differential duty of ₹ 11,33,189/- which has allegedly not been paid on the clearances of irregular blocks of PU Foam made to the related parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection-11A ibid by invoking extended period of limitation. (viii) Whether or not, interest is chargeable from the party on the aforesaid amounts and whether or not, the amount of interest already deposited by them voluntarily, as mentioned in the notice, is liable to be appropriated and adjusted against the proposed demand. (ix) Whether or not, penalty under rule-25 of the Central Excise Rules, 2002, rule-13 of erstwhile Cenvat Credit Rules, 2002 and rule-15 of the Cenvat Credit Rules, 2004 read with Section-11AC ibid is liable to be imposed upon them; and (x) Whether or not, Shri P. Patel, Director of the party and Shri Ajay Prakash Tiwari, Manager (Excise) of the party are liable to penalty under rule 15 of the Cenvat Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the rival contentions and on perusal of records we find that there is no finding of any violation on the part of the appellant as they have paid duty on intermediate product on the basis of available date which have not been found to be wrong and in this view of the matter, we hold the demand to be unsustainable and accordingly set aside the same. 7. The next issue relates to whether Excise duty is chargeable on clearance of duty paid inputs like papers, polythene and HDPE bags which have been used in production and thereafter remains as waste are disposed of. Whether duty is demandable on such disposal of waste. 8. Considered the rival contentions, we hold that it is an admitted case that these are not manufactured goods o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted. 11. The learned D.R. relies on the impugned order. 12. Considering the rival contentions, we hold that the intermediate products manufactured being PU Foam Blocks under job work Challans are not exempted goods and accordingly the disallowance of inputs credit is not attracted under the provisions of Rule 6(i) of Cenvat Credit Rules. Accordingly, we set aside the demand of ₹ 5,55,151/-. 13. The next issue involved is whether Cenvat credit amounting to ₹ 94,41,292/- have been rightly allowed and recovered from the appellant under Rule 12 of Cenvat Credit Rules, 2002 readwith Rule 14 of Cenvat Credit Rules, 2004, on the inputs purchased by the appellant. The suppliers subsequently granted rebate on the quantities pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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