2007 (6) TMI 363

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..... Shri B.L. Meena, SDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we are of the view that the appeal itself can be finally disposed of at this stage. Accordingly, after dispensing with pre-deposit, we take up the appeal. 2. The appellants are engaged in the manufacture of cotton yarn, polyester cotton yarn, pol....

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.... goods. This payment was made in November 2004. The appellants also took credit of this duty in their Cenvat account. Later on, the department issued show-cause notice dated 23-2-2006 asking the party to pay an amount of Rs. 12,09,545/- equivalent to the above Cenvat credit. The notice also demanded interest on the amount under Section 11AB of the Central Excise Act r/w Rule 14 of the Cenvat Credi....

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....ise Rules, 2002 r/w Notification No. 43/2001 ibid was paid, the appellants are at liberty to utilize the goods in their normal activity, for which no law stipulated any requirement of prior permission from the department. Payment of the above duty with cess under Rule 6 of the relevant rules is an admitted fact. Upon such payment, the appellants became entitled to take Cenvat credit and accordingl....

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.... it difficult to satisfy this condition, they chose to pay the duty and cess leviable on the input but for the exemption under Rule 19(2) r/w the Notification. Upon such payment of duty and cess on the input, the assessee became entitled to deal with the input in the ordinary course of business, unfettered by anything contained in the above rule or notification. Thus, they became entitled to take ....