TaxTMI 
TaxTMI 
2007 (12) TMI 140
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....of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. He also imposed penalty of Rs. 6,72,27,080/- under Rule 15(2) of the Cenvat Credit Rules, 2004 read with section11AC of the Central Excise Act, 1944. He also ordered for the recovery of interest on the duty of Rs. 6,72,27,080/- under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. The interest of Rs. 23,448/- already paid by the appellants was ordered to be adjusted against the total interest demanded. 2. Heard both sides and perused the records. 3. The appellants are engaged in the manufacture of Hydraulic Cylinders, Hydraulic Pumps and parts thereof under Chapter Heading 84 of the Central Excise Tarif....
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....he ground that these goods were sold as such in India without using them in the manufacturing process. (b) deny credit of Rs. 7,86,412/- on inputs sent to the job worker for conversion under Rule 4(5)(a) of Cenvat Credit Rules, 2002/2004 not received within 180 days. (c) impose penalty and interest upon the aforesaid amounts. 8. As per show cause notice, the appellants are not entitled to the credit of the CVD on the imported spares and parts sold as such in India, since these were not used m the manufacturing operations. The show cause notice invoked the extended period for demanding duty from July, 2001 onwards. 9. The appellants applied for and obtained the dealers' registration for the same premises on 19-8-2005. Later on, t....
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....of clearance should be treated as reversal of the alleged ineligible credit. Hence, the demand is not maintainable, The entire credit availed on imported inputs has to be considered as utilized towards the payment of duty on the sale of such imported goods only. Therefore, the Department cannot once again demand the reversal, which has already been done. 14. If no duty was payable on the sale of the imported goods, then the duty paid by the appellants on the imported goods should be treated as reversal of the Cenvat credit availed on such imported goods. 15. This view is fully supported by the decision of Tribunal in the case of Deioners Speciality Chemicals (P) Ltd. v. CCE-1997 (96) E.L.T. 659 (T). In that case, the assessee took, th....
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....demand by bringing into play Rule 57C if credit had been taken but kept intact due to the inputs being used for the manufacture of the exempted goods, which were cleared without payment of duty availing of such exemption and such credit was being utilized for other goods not relatable to the inputs in question. That would be the only way Rule 57C will, come into reckoning. Such a situation does not present itself in the present case as the credit was not left unutilized vis-a-vis the final product made from the inputs in question." 16. The assessee in the case of CCE v. Piramal Spinning & Weaving Mills Ltd. - 2002 (145) E.L.T. 322 (T) = 2002 (49) RLT 741 (T) took the credit of the duty paid on the processed fabric. The processed fabric w....
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....RLT 342 (T) (xi) Orion Ropes. (P) Ltd. v. CCE - 2006-TIOL-391-CESTAT-MUM (xii) Systematic Steel Industries Ltd. v. CCE - 2005 (191) E.L.T. 663 (T) (xiii) Orbit Bearing (I) Pvt. Ltd. v. CCE - 2006-TIOL-1637-CESTAT-Mum. 18. In view of the settled legal position, there cannot be any further demand of duty from the appellants. Hence, the demand of Rs. 6,49,78,829/- is not maintainable. The same is set aside. 19. As regards the reversal of the credit of Rs. 14,61,839/- on the inputs lying in the stock as on 17-8-2005 is concerned, we are of the opinion that the same is not required to be reversed as the impugned inputs were lying in the stock and not sold. However, if the impugned inputs are cleared as such on sale, the appellants....