2007 (8) TMI 290

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....enalty of Rs. 10,000/- and Rs. 15,000/- and dropping the demand of duty paid by the respondents utilizing the deemed credit available for clearances of cotton fabrics of CSH 5209. The respondents have two units. Appeal No. E/546/04 relates to orders in respect of Unit I. Appeal No. E/547/04 relates to orders in a case of identical facts in respect of Unit II. First I deal with Appeal No. E/546/04. Appeal No. E/546/04 2. The subject appeal is directed against the Order-in-Appeal No, 5/04 dated 1-8-04. The respondents M/s. V.T. Dyers & Screen Printers, Ambattur had forfeited the facility of fortnightly payment of duty liability on their defaulting payment of duty by the due dates. They were required to pay the duty on each consignment b....

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....earances made by the respondents during the material period without discharging the duty liability entirely from the account current and consignmentwise had to be treated to have been clearances made without payment of duty, in terms of Rule 8(4) of the Central Excise (No. 2), Rules, 2001. When the clearances effected were deemed to have been made without payment of duty, the respondents could not have availed deemed credit. Therefore, the impugned order vacating the demand and penalty was erroneous and had to be set aside. 4. Ld. SDR reiterates the grounds taken by the Revenue. ld. Counsel for the respondents furnishes a copy of the decision of the Larger Bench of the Tribunal in Noble Drugs Ltd., D.D. OKE and D.J. Dhamne v. CCE, Nashik....