2017 (3) TMI 1215

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.... : Ramesh Nair The brief facts of the case is that the Appellant is a Public Sector Undertaking and is engaged in manufacture of Chemicals and Fertilizers falling under chapter 28,29,31 and 38 of the Central Excise Tariff Act, 1985. 2. The Appellant among others are also manufacturing Methanol and Nitric acid. The Methanol is exempted from payment of duty in terms of Notification No. 10/96 f....

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....period 2001 to 2006. It was also proposed to demand interest Section 11AB and penalty under Rule 57 AH/ rule 13 and 15 of Cenvat Credit Rules readwith Section 11AC of the Central Excise Act. The adjudicating authority confirmed the demand alongwith interest and also imposed penalty. The Appellate Commissioner upheld the adjudication order. Hence the present appeal. 3. The Ld. Counsel appearing ....

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....d from the factory. That since the goods were not cleared/ sold from the factory the said rule is not applicable. That Methanol is not exempted from duty as such and therefore no amount can be demanded. He also submits that the entire duty demand is time barred. The use of Methanol in ETP Plant was in knowledge of the department as may be seen from the Order-in-Appeal dt. 14.03.99 in earlier case ....

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.... Chandrapur Magnet Wire Pvt. Ltd. v. Commissioner - 1996 (81) E.L.T. 3 (S.C.), ORIENT TEXFABS PVT. LTD. Vs. CCE, DELHI-III 2015 (327) E.L.T. 605 (Tri. - Del.). In such case the demand made against the assessee is not sustainable. 5.1 We also find that the use of Methanol by the Appellant in their ETP plant was in the knowledge of the department and earlier show cause notice dt. 27.04.2005 was i....