2007 (10) TMI 167

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....d that the payment under Rule 6(3)(b) of Cenvat Credit Rules, 2002 - Rule 57CC of erstwhile Central Excise Rules, 1944 is not a duty and therefore, the respondent has to pay the amount at the time of clearance from the factory and they are liable to pay interest for late payment as fortnightly/monthly basis as per Rule 8(1) of Central Excise Rules, 2002. He confirmed the recovery of interest under Rule 12 of Cenvat Credit Rules, 2002, read with Sections 11A and 11AB of Central Excise Act, 1944 and also imposed penalty. The Commissioner (Appeals), set aside the adjudication order and allowed the appeal of the respondent. Hence, the Revenue filed this appeal. 2.  Heard the learned DR on behalf of the revenue. None appeared on behalf o....

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....e factory" 5. The contention of the learned DR is that the manner of payment of the amount under Rule 6(3)(b) has been mentioned in the Rule itself. He submits that according to Rule 6(3)(b), the manufacturer shall pay an amount equal to 8% of the value of exempted final products "at the time of their clearance from the factory". So, Rule 8(1) of Central Excise Rules cannot be invoked. On plain reading of Rule 6(3)(b), I find that Rule 6(3)(b) provides the manner for determining the amount payable by the manufacturer and that amount is equal to 8% of the total price excluding sales tax and other taxes, if any, of "the exempted final products charged by the manufacturer for the sale of such goods at the time of clearance from the factory.....