2009 (9) TMI 442

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....alent amount of penalty under Section 11AC of Central Excise Act, 1944 read with Rule 15(2) of Cenvat Credit Rules, 2004 along with interest at applicable rate. 2. Brief facts of the case are that M/s. Bajaj Auto Ltd., the appellant, are the manufacturer of the Motor Cycles, rickshaws and spares thereof. They are also availing the facility of Cenvat credit of the duty paid on the specified inputs received in their factory premises in terms of the provisions of Cenvat Credit Rules, 2004. The appellants are procuring these specified inputs from various manufacturers against contractual agreements namely purchase orders for the agreed prices/values. 3. On scrutiny of records maintained for the purpose of availing Cenvat credit reveals th....

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....he suppliers are well within the provisions of Section 4(1) of the CEA, 1944 and the appellants have lawfully availed the Cenvat Credit of the excise duty so paid within the provisions of Cenvat Credit Rules, 2004. He further submits that it is well settled principle that the duty is chargeable at the rate and price when the commodity is cleared at the factory gate and not on the price reduced at a subsequent date. To support this contention he relied on MRF Ltd. v. CCE, Madras reported in 1997 (92) E.L.T. 309 (S.C.) He further submitted that in the instant case it is an admitted fact that they have raised debit notes for the rate reduction, subsequent to clearances of goods by the suppliers from their factories. It is pertinent to note tha....