2006 (8) TMI 70

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....tay application have been filed against the Order-in-Appeal No. 8/2006-C.E. dated 31-1-2006, passed by the Commissioner of Central Excise (Appeals II), Bangalore. As the issue lies in a short compass, they are taken up together for the disposal as per law. 2.The appellants availed Cenvat credit on the inputs. When the appellants opt out of the Cenvat scheme to avail the benefit of SSI exemption....

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.... appellant argued that the demand is not sustainable in the present case. Aggrieved over the order of the Original Authority, the appellants approached the Commissioner (Appeals). The appellants pleaded before the Commissioner (Appeals) that as per Rule 9(2) of the Cenvat Credit Rules, 2002, the balance lapses thereby the present demand for reversal of input credit on work-in-progress is not prope....

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....stead of 31-3-2004. It was further submitted that the work-in-progress as on 31-3-2004 is 'nil' and the Department wrongly adopted the figure as on 31-3-2003. This fact was already considered in an earlier Show Cause Notice dated 15-9-2004 as admitted in the impugned order. The said notice dated 15-9-2004 was adjudicated and is now in appeal before the Tribunal in Appeal No. E/646/2005 and the Tri....

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....tion that as on 31-3-2004, the value of the in-process goods to the tune of Rs. 12,74,726/-. In the course of personal hearing, the documents were shown to me and I found that as on 31-3-2004, the value of in-process stock is 'nil'. In any case, when the appellants opt out of the Cenvat Scheme to avail full benefit of the SSI exemption, they would not be in a position to utilise any Modvat credit.....