TaxTMI 
TaxTMI 
2009 (3) TMI 846
X X X X Extracts X X X X
X X X X Extracts X X X X
....- together with interest and imposed equivalent penalty of Rs. 2,32,40,170/-. She appropriated the amount of Rs. 70,21,383/- which was paid by the appellants towards the input credit availed on cocoa beans utilized for the manufacture of the exempted cocoa liquor and low moisture cocoa mass and directed the appellants to pay the balance amount of Rs. 1,62,18,787/- forthwith. As per the records, the interest of Rs. 4,71,189/- stands paid by the appellants. 2. The issue for consideration before us is whether reversal of Cenvat credit taker on cocoa beans and utilized in both the dutiable as well as exempted product after the clearance of the exempted product absolves the appellants of the liability to pay 10% of the total price of the e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ods otherwise 10% amount payment is mandatory on the part of the assessee." Thus the Show Cause Notice and the impugned order proceed on the premise that had the appellants would have reversed the credit availed on the inputs consumed in the exempted products before clearance of the exempted goods, such reversal would have sufficed and would have met the requirement of law in terms of the Supreme Court judgment in the case of M/s. Chandrapur Magnet Wires (P) Ltd. (supra) and in such case there was no requirement to pay an amount equal to 10%. However, since in the appellants' case, the factual position is that the reversal has been made by them after the clearances of the exempted goods, they have no option but to pay an amount equal to 10....
X X X X Extracts X X X X
X X X X Extracts X X X X
....actory, was held to be in order. 7. The learned Jt. CDR has drawn our attention to para 8 of the judgment in the case of CCE, Bombay-I v. Bombay Dyeing and Mfg. Co. Ltd. reported in 2007 (215) E.L.T. 3 (S.C.), which is reproduced below : "There is no merit in this civil appeal. Under the notification, mode of payment has not been prescribed. Further, exemption is given to the final product, namely, grey fabric. Under the Central Excise Act, 1944, levy is on manufacture but payment is at the time of clearance. Under the Act, payment of duty on yarn had to be at the spindle stage. However, when we come to the Exemption Notification No. 14/2002-C.E. the requirement was that exemption on grey fabrics was admissible subject to the assesse....