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2014 (11) TMI 1062 - AT - Central ExciseCenvat credit on wrong duty payment - Held that:- It is an admitted position that during the said period, the appellant did not manufacture any DFMO at Jammu as their factory was not operating. The receipt of terpene from TYIL, Taloja, during this period, the statements of various officials of the appellant firm confirming the same, the absence of test reports for the DFMO for this period, all corroborate the fact that no deterpenation was undertaken at JDL, Jammu during this period and therefore, the goods cleared during this period at Jammu was none other than CMO. Therefore, the appellant could not have availed the benefit of Notification No. 56/2002 in respect of such clearances. Consequently, the unit at Taloja also could not have availed any Cenvat credit on such wrong duty payment on Crude Mentha Oil. Therefore, the duty demand against M/s. Jindal Drugs Ltd., Jammu under the provisions of paragraph 2A(g) of Notification No. 56/2002-C.E., dated 14-11-2002 read with Section 11A of the Central Excise Act, 1944 is upheld along with interest liability thereon under Section 11AB of the said Act. Central Excise duty demands in respect of Terpene and in respect of Menthol Crystals are upheld against M/s. Tien Yuan India (P) Ltd. under Section 11A of the Central Excise Act, 1944 along with interest thereon under Section 11AB and penalty of equivalent on the said firm under Section 11AC of the Central Excise Act, 1944 are upheld. Confiscation of goods valued at ₹ 95.08 lakhs (approx.) seized on 23-6-2006 at the premises of M/s. Tien Yuan India (P) Ltd., Taloja, under Rule 25 of the Central Excise Rules, 2002 along with option to redeem the same on payment of fine of ₹ 22 lakhs is upheld. The balance of demands towards duty, interest and penalties (other than those mentioned above) are set aside.
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