TMI Blog2009 (2) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and are of the very same appellant, they are being disposed of by a common order. 2. The relevant fact that arise for consideration are the appellant during the relevant period in these two appeals had defaulted in discharging the duty payment to revenue under the provisions of rule 8 of the Central Excise Rules, 2002 read with rule 3 of the Cenvat Credit Rules, 2002/2004. Consequent to the said default, the appellants were directed to make the payments of the duty liability of the clearances made by them through PLA, but the appellants made the payments through Cenvat Credit eligible to them. Show-cause notices were issued and Adjudicating Authority in both the orders held as under: (i) Order-in-Original No. 26/2007 (CE), dated 31-12-2007 ORDER 1. I confirm the demand of Rs. 20,000 (Duty) and Rs. 400 (Ed.Cess) being the duty payable on the clearances of M.S. Scrap to be paid in PLA under section 11A of the Central Excise Act, 1944 read with rule 8 of the Central Excise Rules, 2002 with consequential relief of taking back the credit already utilized towards payment of duty. 2. I demand interest under section 11AB of the Act, 1944 read with rule 8 of the Rules and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned SDR on the other hand would submit that in one case, the appellants deposited the cheques and the said cheques were dishonoured, despite that, they took credit in the PLA and showed the debits. It is his submission that this is nothing but fraud on the Government. He would submit that duty is already debited through RG-23A Part-II, even though they are not supposed to do so. 5. We have considered the submissions made at great length by both sides and perused the records. As regards the amount of duty payable i.e., Rs. 20,400 and Rs. 3,08,59,401, we find that the Adjudicating Authority has herself admitted that the entire amount has been paid by the appellants through Cenvat credit available to appellant. It can be seen from the portion of the order reproduced hereinabove that the Adjudicating Authority has directed the appellant to deposit the amount through PLA and take credit in the Cenvat which has been debited by them. 5.1 On this background, we would like to consider the submissions made by the learned counsel. It is undisputed that the appellant-company has been declared as a sick industrial company and the scheme of revival package is drawn by the Board fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the operation of all or any of the contracts, assurances of property, agreements, settlements, awards, standing orders or other instruments in force, to which such sick industrial company is a party or which may be applicable to such sick industrial company immediately before the date of such order, shall remain suspended or that all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the said date, shall remain suspended or shall be enforceable with such adaptations and iii such manner as may be specified by the board: Provided that such declaration shall not be made for a period exceeding two years which may he extended by one year at a time so, however, that the total period shall not exceed seven years in the aggregate. (4) Any declaration made under sub-section (3) with respect to a sick industrial company shall have effect notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law, the memorandum and articles of association of the company or any instrument having effect under the said Act or other law or any agreement or any decree or order of a Court, Tribunal, officer or other authority or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment (i) To exempt ACL/its directors/officers from the penal provisions of the Companies Act, Central Excise Tax Act and Service Tax Act, Central Sales Tax, Customs Act, and any other law during the period of rehabilitation, (ii) To provide any other relief (s) permissible to a sick industrial company as per the policy of the Central Government for rehabilitation of sick industrial companies. (iii) To re-schedule all statutory dues and extend reliefs and concessions, as applicable for sick industrial companies as per the Government policy guidelines in this regard. (B) Income-tax Department : To consider (i) To exempt/grant relief to ACL from the previsions of sections 41(1), 43B, 45, 72(3), 79, 80 read with sections 139 and 115JB of the Income-tax Act from the date the company became a sick industrial company and for a further period of seven (7) years from COD i.e., 30-9-2006. (ii) To exempt ACL from the penal provisions of the Income-tax Act, 196t and rules made thereunder during the period mentioned as at (i) above. (iii) To waive entire interest and penalty levied and leviable under various provisions of the Income-tax Act, 1961 and rules made thereunder. (C) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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