2010 (2) TMI 539

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....r the Respondent. [Order (Oral)]. - This is an appeal against the order of the Commissioner (Appeals) No. 566/CE/CHD/REV/2007 dated 14-11-2007. 2. None appears for the appellant inspite of notice. On earlier occasions (i.e. on 24-12-2009) also none represented the appellants. 3. Heard the learned DR and perused the records. 4. The appellant is a manufacturer of PVC cotton fabrics and t....

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....of Rs. 8,54,937/- on the appellant under Rule 13(2) of Cenvat Credit Rules read with Section 11AC of the Central Excise Act, 1944. 5. Learned DR reiterates the findings of the Commissioner (Appeals). 6. I have carefully considered the submissions and perused the records. It is a case of the appellant switching over from duty paying stage to availing exemption under Notification No. 50/2003. ....

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....y on the excisable goods manufactured by them and were also availing Cenvat credit before opting to avail exemption w.e.f. 1-5-2004 under notification No. 50/2003-C.E., dated 10-6-2003. 6. From the facts it is observed that the Respondents were registered with the Central Excise department paying duty, availing Cenvat credit and started availing exemption from payment of duty under declaration ....

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....on to evade the payment of Cenvat credit. Therefore, they are liable to penal action under Rule 13(2) of the Cenvat Credit Rules, 2002 read with Section 11AC of the Act. Accordingly, a penalty of Rs. 8,54,937/- (Rupees eight lakhs fifty four thousand nine hundred thirty seven) is imposed on the Respondents under Rule 13(2) ibid read with Section 11AC of the Act. The impugned order dated 26-10-2006....