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TMI Blog2008 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (J) and Shri B.S.V. Murthy, Member (T) Smt. A. Vasudev, Jt. CDR, for the Appellant. Shri B.L. Narasimhan, Advocate, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. - M/s. Ellora Time Pvt. Ltd. are engaged in the manufacture of watches, clocks, calculators, telephones etc. and are availing the Cenvat credit on the inputs as well as the capital goods. They opted to avail the benefit of Notification No. 3/01 dated 1-3-01 which prescribes the effective rate of duty ad valorem 4%, subject to the condition that no credit of duty paid on the input or capital goods exclusively used in the manufacture of these goods, has been taken and the duty is paid in cash or through the accounts current. The appellants opt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of a penalty of Rs. 1 lakh only on Noticee No. I under Rule 25 of the Central Excise Rules, for having cleared the goods for export without appropriate bond in accordance with the procedure prescribed under the said Rules, without denying them the Cenvat credit and without imposition of any penalty on Noticee No. 2 against whom no personal involvement is established, will squarely meet the ends of justice. I order accordingly." Another show cause notice on the same issue but for a different period resulted on similar order No. 21/03 dated 22-8-03 and appeals have been filed against both these orders. 3 . Heard both the parties. The learned advocate on behalf of the respondent, points out that the appeal filed by the respondent aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have done this and availed the benefit of Cenvat credit they debited the credit at one go and took the Cenvat credit. It is not the department's case that the Cenvat credit has been taken on ineligible inputs or capital goods or documents etc. The only objection is that the debit in the export document and bond account was made at 4% and therefore, the assessee had made a choice. As rightly observed by the Commissioner that this is only a procedural correction and substantive rights are not extinguished because of any procedural mistake. What is to be examined is whether the respondents are eligible if they opt for it and follow procedure correctly initially. Once the main issue about the eligibility of Cenvat credit is settled, the grievan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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