2011 (9) TMI 862

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..... Amrita Chatterjee and Ms. Mallika Joshi, Advocates, for the Appellant. Shri S.R. Meena, DR, for the Respondent. ORDER The assessees herein are engaged in the manufacture of cut tobacco and different brands of cigarettes and avail Cenvat credit on inputs, capital goods and input services in terms of the Cenvat Credit Rules, 2004. They have submitted a series of letters of the jurisdictio....

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....and 21-8-2009 were issued proposing recovery of duty of Rs. 1,73,944/- and Rs. 6,81,54,095/- respectively under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A(l) of the Central Excise Act, 1944, together with recovery of interest under Section 11AB ibid for taking inadmissible credit, and proposing penal action against the assessees. The notices were adjudicated by the Commissioner....

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....ove rule, the finding of the Commissioner that very first condition for eligibility of credit on returned goods is that the goods must be usable and used as inputs in the manufacture of finished goods is prima facie not tenable. Further, in the present case, a large percentage of tobacco (obtained by ripping open returned cigarettes) is used along with fresh tobacco in the manufacture of fresh cig....