TaxTMI 
TaxTMI 
2004 (7) TMI 541
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....R, for the Respondent. [Order per : Moheb Ali M., Member (T)]. - The appellants manufacture medicaments falling under Chapter 30 of the Schedule to the Central Excise Tariff Act, 1985. They availed Modvat credit of duty paid inputs and capital goods received in their factory and used them in the manufacture of dutiable final products. During 1996-97 and 1997-98, the appellants filed classi....
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....y in respect of inputs used in such final products, which was against the provisions of Rules 57C and 57CC of the Central Excise Rules. The allegation is that the appellants were required to pay an amount at the rate of 8% of the value of the final products since the final products were exempt from payment of duty. The appellants were asked to reverse Modvat credit of Rs. 5,82,868/- and Rs. 15,77,....
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....to be recovered being neither duty nor Modvat credit and since no recovery machinery is provided under the Act and Rules, the amount demanded by the Commissioner cannot be recovered. The same view was held by the Tribunal in the case of Jindal Vijayanagar Steels Ltd. v. CCE, Belgaum [2003 (157) E.L.T. 414]. He therefore contended that the order of the Commissioner (Appeals) was not in conformity w....
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....epartment can recover the amount calculated at the rate of 8% of the value of the final product as provided under Rule 6 if not paid by an assessee. He therefore pleaded that the case be remanded to the original authority with directions to initiate proceedings in accordance with Rule 12 of the CENVAT Credit Rules, 2002. 5. We observe that the CENVAT Credit Rules, 2002 do provide a machinery....