TaxTMI 
TaxTMI 
2008 (7) TMI 364
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....e the Order dated 30-11-2006, has confirmed the demand of Central Excise duty of Rs. 27,492/- and Education Cess of Rs. 550/- for clandestine clearance of 12.245 MT. of MS ingots on 18-8-2004, which has since been paid by the appellants. He has also confirmed the demand of Rs. 3,20,019/-, being the amount of Cenvat credit fraudulently availed by the appellants which has since been paid by them; imposed equivalent penalty of Rs. 3,48,061/- on the appellants. He has also imposed penalties of Rs. 3,48,061/- each on Shri S.C. Baruah, Shri Vijay Kashyap, Directors and Mrs. Yvenne D'Souza, Administrative Manager of the Company; interest has also been demanded on the Central Excise duty of Rs. 27,492/- and Education Cess of Rs. 550/- and fraudulen....
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....for their acts of commissions have gone to the Settlement Commission with acceptance of their liabilities in this regard. It is the contention of MMPL that so long as the payments have been made by them to KRMPL and KIL, they are entitled to take the credit, since KRMPL and KIL have made good the payments of Central Excise duty in respect of the fraud committed by them. I find that the Central Excise duty, of which the Cenvat credit was fraudulently taken by MMPL, was not paid by KRMPL and KIL. Therefore, there was no question of taking such credit. The subsequent payments made by KPMPL and KIL cannot impart legitimacy to the Cenvat credit taken earlier in view of the prohibition imposed in terms of Rule 7(1)(b) of the Cenvat Credit Rules, ....