9911796707
TMI Blog2009 (11) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed in terms of explanation (ii) to the Rule 6 of the Cenvat Credit Rules, 2004 read with Rule 14 of the said Rules and Section 11A of the Central Excise Act, 1944 along with interest thereon in terms of Section 11AB of the said Act and penalty of equal amount besides the penalty of Rs. 2,000/- in terms of Rule 15(3) of the Cenvat Credit Rules, 2004 has been imposed. 2. The ld. Advocate for the appellants assailing the impugned order on three counts. Firstly, that during the relevant period that is from Jan., 2005 to March, 2008 the credit what was availed in relation to the service rendered was reversed and, therefore, there was no justification for confirming the amount at the rate of 8% of the value of the goods demanded under the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Tribunal in the matter of Nicholas Piramel (I) Ltd. v. Commissioner of Central Excise, Thane-I reported in 2008 (232) E.L.T. 37, it is also sought to be contended that apart from the fact that such a reversal cannot be of any benefit to the assessee, the law on the point being very clearly' comprised under Rule 6(2) of the Cenvat Credit Rules, 2004, that there is no case made out to find fault with the impugned order. As regards the extended period of limitation, it is sought to be contended on behalf of the respondent that the authority below after taking note of the correspondence including the letters to which the attention was sought to be drawn by the id. Advocate for the appellant, has clearly observed that the said corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Hello Minerals Water (P) Ltd. (supra) as well as the Supreme Court judgment in the matter of Chandrapur Magnet Wires (P) Ltd. v. Collector of Central Excise, Nagpur reported in 1996 (81) E.L.T. (3) (S.C.). Being so, merely be cause the reversal has been done after its utilization, prima facie such a defence may not be of any avail to the assessee to avoid the liability which assessee may have to face in the form of the demand of amount equivalent to 8% of the valuation of the products in relation to which the credit has been availed for service utilized. As regards the invocation of the period of limitation, as rightly pointed out by the ld. DR. impugned order merely discloses proper consideration of this aspect, apart from the fact tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntentions sought to be raised in the matter, certainly the case has been made out for waiver of the demand in relation to the interest and penalty amount imposed under the impugned order. 7. Accordingly, the application partly succeeds. The amount of penalty imposed under the impugned order as well as demand of interest payable in relation to the demand confirmed under the impugned order is hereby stayed till the disposal of the appeal. The amount of Rs. 1,69,24,709/-, however, is required to be deposited by way of 4 instalments at the interval of six weeks each. The first instalment of Rs. 50.00 Lakhs should be deposited within six weeks. The next instalment of Rs. 50.00 Lakhs should be deposited within next 6 weeks. Further the third ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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