2008 (1) TMI 717

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....CDR, for the Respondent. [Order]. - This application has been filed by M/s. Chemfab Alkalis Ltd., Pondicherry (CAL). CAL manufactures Caustic Soda using Sodium Carbonate and Sodium Hydroxide. In the impugned order, the Commissioner (Appeals) has sustained a demand of Rs. 4,61,755/- under Section 11A of the Central Excise Act (the Act), the interest thereon and equal amount of penalty under S....

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....not attracted. He also submits that particulars of removal of brine solution to their sister concern were periodically intimated to the department in the monthly returns. Therefore, extended period under Section 11A(1) proviso could not be validly invoked in the instant case. He relies on the decision of the Apex Court in CCE v. Tata Iron & Steel Co. Ltd., reported in 2004 (165) E.L.T. 386 (S.C.),....

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....s own factory. The argument that brine solution is not marketable is not correct. The plea of limitation on the basis that the relevant information was furnished periodically in their monthly returns is being made for the first time and there is no evidence of such submission in the records. Therefore this plea is not sustainable. 4. I have considered the case records and the submissions m....

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....vant entry in the First Schedule to the Central Excise Tariff Act, 1985. Therefore, the credit of duty paid on all the raw materials that are received and used in the process of production in the assessee's factory will be admissible only if they get consumed in the manufacture of dutiable final products. In the instant case, obviously, part of the brine solution is cleared without payment of duty....