2002 (1) TMI 882

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....he Respondent. [Order per : Gowri Shankar, Member (T)]. - A sum of Rs. 2,86,00,850/- and penalty of Rs. 2,89,55,303/- are required to be deposited by Thermax. Penalties under Rule 209A of Rs. 35,000/- and Rs. 25,000/- and required to be deposited by R.P. Pargaonkar and G.B. Khade, its employees. 2. The demand and the penalty are based on a finding of the Commissioner that, by applying the....

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....Rule 6, it goes on to say :- "Consequently, where the assessee has not paid the amount (of 8% of the total price of exempted goods), the availment of corresponding credit on inputs is incorrect. The recovery of such credit taken incorrectly is squarely covered by the provisions of Rule 12 (erstwhile Rule 57-I)." 4. It seems clear to us from the circular for the reason that if the inputs wer....