2007 (2) TMI 551

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....nt. Shri Devan Parekh, Advocate, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The present appeal stands filed by the Revenue against the order of the Commissioner of Central Excise, Ahmedabad vide which he had confirmed duty of Rs. 31,20,936/- against the respondents along with imposition of personal penalty of Rs. 1 lakh. In addition he has allowed deemed credit in res....

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....cribed under the Central Excise Tariff Act, 1985 with effect from 1-3-2001. At the time of switch over from the Compounded Levy Scheme to ad valorem structure of Central Excise duty, the said assessee had declared their stock as on 28-2-2001 vide their letter No. ADL/CF/00-01 dt. 1-3-2001. Under the said stock declaration, the said assessee had declared some fully finished stock of fabrics lying i....

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....01, that they had inadvertently cleared some processed textile fabrics which were liable to ad valorem duty, without payment of duty, assuming the same to be stock of compounded levy scheme. The said assessee voluntarily debited Central Excise duty of Rs. 23,40,706/- (Rs. 7,80,236/- B.E.D. + Rs. 15,60,470/- AED (ST)) leviable on the above said cotton fabrics and fents, rags, chindies vide PLA E. N....

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....it in respect of clearances, for which ad valorem duty was paid by the subsequently and not at the time of clearance of the goods. There is no dispute that the respondents are entitled to deemed credit. If the duty would have been paid at the time of clearance of the same, they would have availed the deemed credit. The goods were originally cleared by them under Section 3A without payment of duty ....