TaxTMI 
TaxTMI 
TaxTMI 
2010 (1) TMI 30
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...., 2002 is ordered to be withdrawn and they are required to pay excise duty for each consignment at the time of removal of the goods with effect from 21.12.2009 to 30.06.2010. ii. Payment of excise duty by utilization of CENVAT credit as provided under rule 3(4) of the CENVAT Credit Rules, 2004, is ordered to be stopped with effect from 21.12.2009 to 30.06.2010. During this period, the assessees are required to pay excise duty without utilizing CENVAT credit. However, the assessees are permitted to take CENVAT credit on goods received at the respective factories during this period, which can be utilized for payment of duty on goods cleared from the respective factories after the aforesaid period is over. iii. The assessees will maintain records of receipt, disposal, consumption and inventory of the principal inputs on which Cenvat credit has not been taken with effect from 21.12.2009 to 31.05.2010 in both the factories separately. iv. The assessees will intimate the jurisdictional Superintendent of Central Excise within twenty four hours of the receipt of principal inputs in each of the factories on which Cenvat credit has or has not been taken and the same should be kept avail....
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....CC requires that the Central Government shall do so by way of a notification in the official gazette indicating, inter alia, the nature of restrictions and the procedure for issuance of such an order. 5. Rule 12AA of the CENVAT Credit Rules, 2004 is in identical terms with regard to cenvat credits. In pursuance of the power given under Rule 12CC of the Central Excise Rules, 2002 and Rule 12AA of CENVAT Credit Rules, 2004, the Central Government issued the said notification on 30.12.2006. The relevant portions of the said notification are as under:- Notification No. 32/2006 - Central Excise (N.T.) G.S.R. (E).- In pursuance of rule 12CC of the Central Excise Rules, 2002, and rule 12AA of the CENVAT Credit Rules, 2004, the Central Government, hereby declares that where a manufacturer, first stage or second stage dealer, or an exporter including a merchant exporter is prima facie found to be knowingly involved in any of the following,- (a) removal of goods without the cover of an invoice and without payment of duty; (b) removal of goods without declaring the correct value for payment of duty, where a portion of sale price, in excess of invoice price, is received by him or on hi....
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....the period of suspension, the said dealer shall not issue any Central Excise Invoice. However, he may continue his business and issue sales invoices without showing excise duty in the invoice and no CENVAT credit shall be admissible to the recipient of goods under such invoice. (3) xxxx xxxx xxxx xxxx 4. Procedure.- (1) The Commissioner of Central Excise or Additional Director General of Central Excise Intelligence, as the case may be, after examination of records and other evidence, and after satisfying himself that the person has knowingly committed the offence as specified in para 1, may forward a proposal to the Chief Commissioner or Director General of Central Excise Intelligence, as the case may be, specifying the facilities to be withdrawn and restriction to be imposed and the period of such withdrawal or restrictions, within 30 days of the detection of the case, as far as possible. (2) The Chief Commissioner of Central Excise or Director General of Central Excise Intelligence, as the case may be, shall examine the said proposal and after satisfying himself that the records and evidence relied upon in the said proposal are sufficient to form a reasonable belief that a p....
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....ter 39 without reflecting the same in the statutory books of accounts and without payment of Central Excise duty as leviable. During the course of search at your factory premises and other related premises, various incriminating documents such as parallel invoices, private records containing details of sale of finished goods not reflected in the invoices issued by the company for the period from June 2005 to June 2009 were recovered. Comparison of these figures with daily stock account maintained by you evidences the clandestine clearances of the excisable goods from your premises, without payment of duty and education cess. Statements of Shri Vinay Kannodia, Director of the Company, Shri C. N. Malviya, Manager of the Company, Shri Siddharth Dixit, Marketing Agent of the Company, Shri Ajay Kumar Dwivedi, Head (operations) and Shri Ravi Kant Tripathi, accountant of the Company have been recorded under which they have admitted the clandestine clearances of goods without payment of duty. Accordingly, a proposal to withdraw the facility of monthly payment of duty and to restrict the payment of duty through Cenvat Credit and maintenance of records of receipt, disposal consumption and in....
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....ated: 11th September, 2009 To The Director General, Director General of Central Excise Intelligence, West Block No. VIII, Wing No. 6, R. K. Puram, New Delhi-110022. Sir, Sub: Notice in terms of para-4 of Notification No. 32/ 2006- CE (NT), Dated 30.12.2006. Please refer to notice F. No. 574/CE/107/09/INV, dated 3.9.2009, issued to M/s Vinay Wires and Poly Products Pvt. Ltd, Unit-I & II, B-4, Site No. 2, Rania, Kanpur Dehat, Kanpur, under para-4 of Notification No. 32/2006-CE(NT), dated 30.12.2006 proposing therein taking of the following deterrent action: (i) to withdraw the facility of monthly payment of duty; (ii) to restrict payment of duty through CENVAT credit; and (iii) maintenance of records of receipt, disposal, consumption and inventory of the principal inputs on which CENVAT credit has not been taken. We have been engaged by the notice to represent their case before the Director General, Directorate of Central Excise Intelligence. Requisite Vakalatnama is enclosed herewith. The aforesaid deterrent action has been proposed to be taken under notification No. 32/2006-CE(NT), dated 30.12.2006, on the basis of alleged recovery of parallel invoices and priva....
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....alia submitted that intimation letter for the hearing did not give the details on the basis of which charges are being made. It was stated that in the absence of relied upon documents, it was not feasible to set forth an effective defence. He requested for a reasonable time of about one month to file suitable and effective explanation to the allegations made after furnishing copies of relied upon documents and requested that the matter may be kept in abeyance in keeping with the principles of natural justice; that in the absence of relied upon documents, it was not feasible to give effective defence. The Director General, however, in the facts and evidences of the case did not deem it fit to keep the matter in abeyance and forwarded the said proposals with his recommendation. 9. The position, therefore, on facts is that a notice was issued to the petitioner calling upon him to explain as to why the restrictions should not be imposed on the petitioner in terms of the said notification. The petitioner sought the supply of the documents which were relied upon by the Director General of Central Excise Intelligence so as to enable the petitioner to make an effective and complete repres....