2018 (6) TMI 1340

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....nt sometime in 1997 set up a plant for manufacture of Purified Terepthelic Acid (PTA). The manufacturing activity started sometime in September, 1999 and from November, 1997 to March, 1999, Cenvat credit of Rs. 1,27,95,483/- was taken in respect of the various inputs. Since the quantity of the final products was not up to the mark, the manufacturing activities stopped totally in August, 2000. Since then, there has been no manufacture and the plant is lying closed. The appellant, however, have been selling the finished products and the last sale was in April, 2008. The department initiated proceedings by issue of five show cause notices for demand of Cenvat credit totaling Rs. 1,27,95,483/- for the period from November, 1997 to March, 1999 o....

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....e Commissioner was directed to adjudicate the show cause notice after giving finding on the above points. In the de-novo order dated 23.12.2013, the learned Commissioner has confirmed the total Cenvat credit demand of Rs. 1,27,95,483/- along with interest and has imposed penalty of equal amount on the appellant against which this appeal has been filed. 3. Learned Counsel for appellant, pleaded that the inputs in respect of which the Cenvat credit had been taken, had been taken up for manufacture and some of such inputs are in semi-finished state and the remaining quantity of inputs were converted into final product which is still lying in stock, that the appellant used the inputs in the manufacture of finished goods, out of which, 1172 M....