2006 (1) TMI 335

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....one, for the Respondent. [Order]. - This appeal is directed against the Order-in-Appeal dated 3-3-2004 which allowed the appeal of the respondents. The relevant facts arise for consideration are that the respondents are engaged in the manufacture of P & P Medicines and were availing Cenvat credit in respect of inputs used relation thereto. The respondents opted for exemption of the finished ....

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.... cross objections. 3. Heard ld. DR and perused the records. I find that the ld. Appellate Authority has set aside the penalty and interest imposed on the appellant based on the finding that Rule 12 of the Cenvat Credit Rules is applicable in this case. In order to appreciate the correct position, the said Rule 12 of Cenvat Credit Rules is reproduced : "12. Recovery of Cenvat credit....

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....ts in the manufacture of the final products. This being the fact the provisions of Rule 12 are clearly attracted in this case. In view of this the order-in-appeal which holds that interest is not payable under Rule 12 is set aside and the respondents are directed to pay the interest on the amount of duty confirmed against them. 5. In respect of the penalty, the order-in-appeal is correct i....