TaxTMI 
TaxTMI 
2012 (3) TMI 362
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....vailing the benefit of this notification. The product being manufactured are pesticides. Notification No. 56/2002-C.E. issued under Section 5A(1) of the Central Excise Act, 1944 exempts the specified goods manufactured by the units located in the specified areas of the State of Jammu & Kashmir from so much of the central excise duty and the additional excise duty leviable thereon as is equivalent to the duty payable on the value addition undertaken in the manufacture of the said goods by the said units. Para-2 of the Notification states that the duty payable on the value addition shall be equivalent to the amount calculated as a percentage of the total duty payable on the said excisable goods of the description specified in Col. 3 of the Ta....
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....acturer under this exemption notification during a month is nil, if the Cenvat credit available at the end of the month exceeds the total duty payable and if the Cenvat credit available at the end of the month is less than the total duty payable, the quantum of exemption would be the difference between the duty payable and Cenvat credit available, subject to the cap of the duty on the value addition specified in Col. 4 of the Table in para-2. 2. The period of dispute in this case is from 2005-2006 to 17-7-2009. There are three allegations against the appellant :- (1) During this period, they inflated their production figures inasmuch as the production shown in their RG-I Register is much higher than the pr....
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....interest on it under Section 11AB ibid and the demand for balance amount of Cenvat credit was dropped; and (c) Penalty of Rs. 1,44,78,352/- was imposed on the appellant under Section 11AC of the Central Excise Act and another penalty of Rs. 16,93,436/- was imposed on the appellant company under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 4. Against this order of the Commissioner (Appeals), the present appeal and stay application has been filed. 5. Heard both sides in respect of stay application. 6. Shri T.R. Rustogi, Advocate, ld. Counsel for the appellant, pleaded that the allegations of inflating the production figure and availing wr....
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....on No. 56/2002-C.E. provides exemption to the extent as mentioned in the notification by way of requiring the assessee to first pay the duty through PLA, if any payable, after exhausting the Cenvat credit available at the end of the month and it is the duty paid through PLA which is available as refund subject to the cap of duty on the value addition specified for the product in the notification which for the goods of Chpater 38 is 34%. It is also not the Department's allegation that the quantum of exemption availed is more than the duty payable on the specified value addition i.e. 34%. Thus even if the department's allegation that the appellant have inflated the production figures is accepted, the fact remains that the refund they have rec....