2006 (7) TMI 514

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....vocates, for the Appellant. Shri R.K. Singla, JCDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. - This appeal has been filed against the OIO No. 01/2004 dated 6-2-2004 passed by the Commissioner of Central Excise, Bangalore-III Commissionerate. 2. The appellants manufacture Steam Turbines and Gas Turbines. They avail exemption under Notification No. 6/2002-C.E., ....

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....stand has been taken on account of the Board's Circular mentioned supra. The amount to be reversed in accordance with the Board's Circular works out to Rs. 59,24,356/-. We reproduce Annexure-A, indicating the calculation of amount to be reversed. Annexure-A Sl. No Name of the customer Invoice No. & Date Value Amount reversed as per Rule 6 of Cenvat Credit Rules but collected f....

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....040.00 3911040.00 312883.20     TOTAL 68165000.00 5889456.00 74054456.00 5924356.48 The Show Cause Notice proposes to demand the entire amount of Rs. 59,24,356/- under Rule 6 read with Rule 12 of Cenvat Credit Rules, 2002 read with Section 11A of Central Excise Act, 1944. Interest under Section 11AB has been demanded. Penalty under Rule 13 of Cenvat Credit Rul....

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....ntire amount. Thus, the Show Cause Notice as well as the Adjudication Order betray the non-application of mind. In our view, the appellant has reversed more than adequate amount as the Rule contemplates reversal of 8% of the sale price only. In the present case, it is stated in the Show Cause Notice that the appellant had reversed 8.64%. There is also no prohibition to collect this amount from the....