2008 (12) TMI 178

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.... they were paying duty equivalent to 8% of the value of the clearances under exemption Notification No.10/97. As per Cenvat Credit Rules, 2004, the appropriate duty to be paid is 10.2% on the assessable value on the clearances made under Notification No.10/97. Proceedings were initiated against the respondents for differential duty. The Adjudicating Authority confirmed the demand and Rs. 48,894/- and Education Cess of Rs. 978/- along with interest and imposed penalty of Rs. 49,872/- under Rule 25 of the Central Excise Rules, 2002. It is seen that the duty amount had already been paid by the respondents well before the issue of show cause notice. Interest had also been paid. They had stated before the Commissioner (A) that out of ignorance t....

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....misstatement. (2) Even with regard to payment of interest also the assessee had submitted that interest amounting to Rs. 2,390/-, on the differential amount due, has been paid vide entry No. 42 dated 10-10-2005 in PLA. The Adjudicating Authority in his findings in the Order-in-Original, has explained that on verification of the PLA abstract for the month of October 2005, found that the entry No. 42 relates to credit taken on the basis of a challan and the entry is not related to debit entry for payment of interest by the assessee. Further, on scrutiny of the PLA abstract for the month of March 2006, it was found no entries towards interest payment were made nor any evidence was produced by the assessee for payment of interest subsequentl....