2004 (7) TMI 541

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Appellant. Shri Hitesh Shah, SDR, 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ber 1997 and availed Modvat credit of duty 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 Modva....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me Court, and argued that the amounts sought 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 C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rought into force. Under these provisions the department 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....