2007 (7) TMI 27

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.... a system of abatement on account of duties on the inputs like grey fabrics, chemicals etc. at the time of clearing the processed fabrics. As the changes were effected on 1-4-2003, Notification No. 25/2003-C.Ex. (N.T.), dated 25-3-2003 was issued making available credit in respect of raw materials lying as stock as such, credit on the inputs which were in process and also credit attributable to inputs used in finished goods which were lying as stock as on 31-3-2003/1-4-2003. The detailed procedure has been prescribed, which included filing of written declaration about the stock of raw materials, semi-finished and finished goods lying on the crucial cut-out date. The credit availability was also subject to production of documents evidencing ....

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....n simultaneously by the raw material supplier for the raw material and by the appellants for the finished goods using such raw materials is not barred. 4.2 For this purpose the ld. advocate relied on the decision in the case of Hindustan Lever Limited v. C.C.E. - 1989 (40) E.L.T. 388 (Tribunal) and in case of C.C.E., Hyderabad-I v. Premier Mushroom Farms - 2005 (190) E.L.T. 511 (Tri-Bang.). 4.3 Alternatively, the learned Advocate submits that this is a case basically involving interpretation and there was no justification whatsoever for imposing/sustaining penalty under Section 11AC and further the demand has been issued within normal period of limitation. 5. Learned DR submits that the credit is allowed under 6 of 2002 at the time of cl....