2002 (2) TMI 200

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..... at they were clearing the items like hard coke, pearl coke, mixed coke, breeze coke, etc. manufactured in their coke oven plant which the appellants were selling to outside parties without payment of Central Excise duty as the same were chargeable to nil rate of duty. It was further observed that the electricity generated in Thermal Power Plant (TPP) situated within the premises of the assessee as well as high pressure steam, which is generated from the demineralised water along with phenolic water are used in the coke oven plant in or in relation to the manufacture of cokes of different grades. It was, therefore, observed that in the manufacture of coke from different types of coal, electricity, steam and phenolic water were the products o .....

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..... read with Section 11AC and Rule 173Q for contravention of Rules 57C, 57CC, 57G, 173F and 173G of the Central Excise Rules, 1944. 2. On considering the reply of the party, the Commissioner of Central Excise, Jamshedpur vide his order dated 15-12-98 held that an amount of Rs. 5,61,56,938.00 calculated @ 8% of the price of coke sold by the appellants to the outside parties without payment of duty during the period from September, 1996 to February, 1998 in terms of the provisions of sub-rules (1) and (2) of Rule 57CC is liable to be recovered from the appellants under Rule 57-I. He further held that they are liable to penalty under Rule 57-I(4) for irregular availment of credits on the inputs used in or in relation to the manufacture of .....

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..... he Board Circular referred above. When that is so in our view, in the absence of a recovery proceedings machinery provided under the Act and Rules, the amount cannot be claimed from the assessee. Hence, we set aside the impugned order by allowing the appeal." 4. The above legal position in relation to recovery of the amount @ 8% of the value of the goods cleared without payment seems to be also admitted in the Board Circular No. 591/28/2001-CX, dated 16-10-2001. This Board Circular is also reproduced below :- "1. I am directed to say that a doubt has been raised regarding legal provisions for recovery of amount not paid by an assessee in terms of the provisions of Rule 6 of the Cenvat Credit Rules, 2001 (Rule 57CC of the ers .....

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