2022 (6) TMI 392

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....ty free, as they are engaged in the manufacture and export of finished goods. The import is already duty free under Exemption Notification No.52/2003- Cus dated 31.03.2003. 3. Some quantity of such ingots worth Rs.5,11,65,254/- was cleared by the appellant to its sister unit in Domestic Tariff Area (hereinafter referred to as 'DTA Unit') during the period March, 2013 to December, 2014. 4. On clearance of ingots to DTA, the appellant paid Basic Customs Duty (BCD), Education Cess (Ed. Cess) and Secondary & Higher Education Cess (SHE Cess) in cash. The appellant also paid Countervailing Duty (CVD) and Special Additional Duty (SAD) on such clearances, by utilisation of Cenvat credit. 5. During the course of audit conducted for the peri....

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....cordingly, Revenue issued show cause notice dated 02.02.2016 demanding customs duty of Rs.88,38,971/-, alleged to be short paid, as appellant had already paid duty by debit to cenvat credit account, along with proposal to appropriate the same, alongwith interest under Section 28 AA of the Act and further, penalty was also proposed. The said show cause notice was adjudicated on contest vide order-in-original dated 7.11.2016, whereby the proposed demand was confirmed along with interest under Section 28 AA of the Act, and further allowing appropriation of the amount, which the appellant already deposited Rs.64,42,330/- plus Rs.9,27,423/- in cash totalling Rs.73,69,753/- and further equal amount of penalty was imposed under Section 114 A of th....

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.... was pleased to reject the ground of limitation observing that duties of customs payable could not have been paid from cenvat account. As the duty demand was not paid initially at the time of clearance and was paid subsequently, thus there occurred delay resulting into requirement for payment of interest under Section 28 AA of the Act. It was further observed that these facts came in the knowledge only during the course of audit and accordingly, extended period was rightly invoked. Thus, the appeal was rejected. 11. Being aggrieved, the appellant is before this Tribunal. 12. Ld. Counsel for the appellant informs that against the first show cause notice dated 2.2.2016, pursuant to adjudication order, they had appealed before the Commis....