2004 (2) TMI 92

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.... Induction Furnaces falling under sub-heading 8514.00 of the CETA, 1985. They have cleared the goods viz. Induction Furnace to Central Mechanical Engineering Research Institute, Durgapur and also to Naval Materials Research Labs, Govt. of India, Ministry of Defence, without payment of duty in terms of Notification No. 10/97. The assessee availed benefit of Modvat credit on the inputs which were common for dutiable final products as well as the product cleared at Nil rate of duty and no separate inventory of inputs were maintained for the different categories of Product as required under Rule 57CC of the CER. Show cause notices were thus issued asking the assessee to pay an amount equal to eight per cent of the price (excluding sales taxes a....

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....be recovered. 5. The learned JDR Shri A. Jayachandran, appearing for the Revenue, at the time of hearing of the Stay Petition in the matter on 29-5-2001 had submitted that although the judgments are on the point, however, appeal need not be disposed and may be kept pending to ascertain the further development in the matter. 6. We have considered the rival submissions and gone through the case records and perused the various citations. We note that in terms of the law as it stood at the relevant time, there was no provision under the Central Excise Rules which defined "amount" and what was provided for was recovery of duty and interest payable on duty. Therefore, the case laws cited by the party squarely apply to them. We also note tha....

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....ny manner as representing the duty of excise to pay the amount so collected to the credit of the Central Government preserved, protected and kept in tact and is not in a manner interfered with or undermined by this order ......... ......". 7. In the present case, as noted above, the period of dispute is well before the amendment to Rule 6 of the Cenvat Credit Rules by insertion of Explanation I under Rule 6 of Cenvat Credit Rules, 2001 with effect from 1 July, 2001 which reads as under : Explanation I : the amount mentioned in conditions (a) & (b) above (i.e. Rule 6(a) & (b) shall be paid by debiting the CENVAT credit or otherwise. Rule 6 ibid was further amended by insertion of Explanation II as under by Cenvat Credit Rules, 2002 ....