TaxTMI 
TaxTMI 
2003 (11) TMI 169
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.... paid on the inputs; that since raw materials for both their products dyes and plastic moulded furniture is common; that they pay the amount equal to 8% of the price of the exempted goods at the time of their clearance in terms of provisions of Rule 57CC of the Central Excise Rules, 1944; that the said amount of 8% is being collected by them as cost of their product from their customers; that it is the case of the Department that their products being exempted, they have to deposit the duty collected by them at the rate of 8% with the Government as per the provisions of Section 11D of the Central Excise Act. The learned Advocate, further, submitted that the amount deposited by them under Rule 57CC is not duty and as such provisions of ....
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....eriod from April, 1997 to June, 1999; that as such the entire period is beyond the normal period of time-limit in terms of Section 11A of Customs Act. He also relied upon the decision in the case of Gem Cables and Constructions Ltd. v. CCE, Hyderabad [1994 (72) E.L.T. 848 (Madras)] wherein it has been held that Section 11D can be invoked only within a period that is permissible under Section 11A. 3. Countering the arguments Shri Kumar Santosh, learned SDR along with Shri P.M. Rao, learned Departmental Representative, submitted that the invoices issued by the Appellants clearly mentioned 8% as duty; that as undisputedly the toys are exempted from payment of duty, whatever amount has been collected by them from their customers, is an amoun....
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....ed products. Rule 57C of the Central Excise Rules, 1944 clearly mentions that no credit of the specified duty shall be allowed on such quantity of inputs which is used in the manufacture of final products which are exempted from the whole of duty of Excise leviable thereon or are chargeable to nil rate of duty. Rule 57C of the Rules further provide that the provisions of sub-rule (1) of Rule 57 shall be deemed to be satisfied only when the provisions of sub-rule (1) or sub-rule (5) or sub-rule (9) of Rule 57CC are complied with. Sub-rule (1) of Rule 57CC provides that the manufacturer shall pay an amount equal to 8% of the price of the exempted goods at the time of their clearance from the factory. The appellants have opted for the procedur....
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....rovides as under :- "(b) for sub-section (2), the following sub-sections shall be substituted and shall be deemed to have been substituted, namely :- (2) Where any amount is required to be paid to the credit of the Central Government under sub-section (1) and which has not been so paid, the Central Excise Officer may serve on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government. (3) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under ....