2009 (6) TMI 792

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....lty was proposed to be imposed under Section 11AC of the Act. These proposals were contested. In adjudication of the dispute, the original authority confirmed the above demand against the assessee and imposed on them penalty of Rs. 10,000/-. In an appeal filed by the party, the order of adjudication was upheld. Hence the present appeal of the assessee. 2. Examined the records and heard both sides. The appellants are engaged in the manufacture of textile fabrics in their composite mill. They were entitled under Rule 9A of the Cenvat Credit Rules, 2002 to avail the benefit of deemed credit on the inputs lying in stock or in process or contained in finished products lying in stock as on 31-3-2003. For this benefit under sub-rule (2) of....

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....e between the deemed credit actually taken and the deemed credit due. This demand was worked out as follows :- Type of input stock Total length Ass. Value declared Deemed credit taken Actual value of input stock Deemed value as per Notfn. 35/2003-C.E. (N.T.) dated 10-4-2003 Deemed credit actually available @ 10% Diff. duty payable (1) (2) (3) (4) (5) (6) (7) (4)-(7) Unprocessed grey fabrics 2644.45 4,59,244 27.555 dated 30-4-03 1,65,004 1,42,497 14,250 13,305 Under processed grey fabrics 20531.25 40,49,859 2,42,991 Dated 30-4-03 12,24,866 10,57,794 1,05,779 1,37,212 TOTAL 23175.7 45,09,103 2,70,546 13,89,870 12,00,291 1,20,02....

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....ined in fabrics or garments lying in stock as on 31st day of March, 2003 shall be calculated in the following manner, namely :- (i) Where the inputs and the finished products are covered under notification no. 52/2001-Central Excise (N.T.) dated the 29th June, 2001, subject to such conditions as prescribed under the said notification, the credit shall be equal to the such rate of credit as may be notified by the Central Government in this behalf, multiplied by the quantity of such finished product as declared by the assessee; or (ii) where the inputs and the finished products are covered under Notification nos. 54/2001-Central Excise (N.T.) dated the 29th June, 2001, or 6/2002-Central Excise (N.T.) dated the 1st March 2002, ....