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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 ..... ellant. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 3-2003 passed by the Commissioner with the following observations : "10. It is absolutely clear that had the said Noticee declared the rate of duty as 16% (instead of 4% in terms of said exemption Notification 3/2001) in the export documents and also covered it by bond of appropriate amount, he would have been entitled substantively to the Cenvat credit of Rs. 44,40,515/- on the inputs, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 advo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other facts of the case. 4. Even though the doctrine of merger has been put forth by the respondent the matter is considered on merits also. In this case, the respondent was paying duty at the rate of 4% in terms of Notification No. 3/2001 dated 1-3-2001 in respect of clearance of goods for home consumption. As observed by the Commissioner, they could have debited 16% of the duty in the running b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner 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 grievance of the Revenue relating to enhancement of penalty, levy of int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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