2007 (4) TMI 456

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....ma, JDR, for the Respondent. [Order]. - Heard both sides. The issue relates to levy of interest and imposition of penalty under Rule 13 of Cenvat Credit Rules for alleged wrong utilization of the capital goods. The appellant is engaged in the manufacture of excisable goods i.e. processed fabric. On 25-9-03, a team of Central Excise officers visited factory of Just Textiles Ltd. During the sc....

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....ise held that the assessee had correctly reversed the credit along with interest and the same is liable to be appropriated towards duty. Further it is observed that there is no suppression and willful statement of the facts by the assessee and they have no mala fide intention to evade payment of duty. Therefore, there was no scope to invoke Sec. 11A(1) of Central Excise Act, 1944. Further, it is o....

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....e of final product of their own. Whereas, the authorities below found fault about non-installation and non-utilization of the capital goods in the factory premises of the assessee itself. This is the main allegation in the show cause notice, but the finding is about wrong availment of Cenvat credit by the assessee on the ground that they sent the capital goods to the job worker. It is also submitt....

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....posed under Rule 13 of Cenvat Credit Rules, 2002. As a matter of fact the assessee has already paid Rs. 74,888/- vide PLA Entry No. 129 dated 7-10-03. I am of the further view that Rule 13 of Cenvat Credit Rules, 2002 is equally not applicable since it is not a case of wrong availment of Cenvat credit The ingredients of Rule 13 of Cenvat Credit Rules, 2002 are no way attracted. Therefore, the inte....