2017 (12) TMI 1302

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.... heading 271400- 2471500 and 381400 of CETA 1985. They also filed Cenvat Credit on inputs used in the manufacture of final products. 3. As per show cause notice dated 6th July, 2009, it was proposed to demand excise duty of Rs. 8,817/- under Section 11A of the Act and Cenvat Credit amounting to Rs. 2,87,492/- under Rule 14 of CCR, 2002 alongwith interest. Further penalties were also proposed. This proposal was based on the ground that appellant had removed input - Bitumen, as such on which Cenvat Credit was availed but they did not reverse - pay an amount equal to the credit availed on removal of such input. It was also observed that the sale value shown in the balance sheets of the appellant is more than the value in the ER-I Returns. The....

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..... The seller was classifying the same as Bitumen 80/100 under Chapter 2713.20 of CETA. As the sale invoice of the appellant, they cleared it under Chapter heading 2714.90 mentioning the description as Bitumen and according to the appellant, it was a manufactured product different than the original received from their seller/supplier of input. 5. The ld. Commissioner (Appeals) further took notice of the classification of Bitumen under CETA, 1985 as follows:- "2713 -Petrolium Coke - petroleum Bitumen, and other residues of petroleum oils or of oils obtained from Bituminous minerals - 2714- Bitumen and asphalt, natural; bituminous or oils shale and tar sands; asphaltites and asphaltic rocks 2715 - Bituminous mixtures based on natural aspha....

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....ined the manufacturing process of conversion of Bitumen to Bitumen emulsion. Bitumen 80/100 as received from the supplier, is heated in a column for about 8 Hours and also blown. Thereafter, they mix the same with furnace oil. Thereafter, they get the end-product, which is „bitumen - cut back‟ or „Bitumen emulsion‟. The same after testing is packed and is ready for dispatch. The ld. Counsel also refers to their profit and loss account for the financial year ending 31st March, 2007, which has been duly certified by the CA pursuant to audit. As per the profit and loss account the appellant have got net sales of Rs. 2,75,16,227/- against the consumption of raw-material valued at Rs. 21,129,333/-. They have a net profit ....