9911796707
TMI Blog2010 (4) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise (Appeals), Gurgaon. 1.1 The appellants are manufacturing MS fabricated hardware structures chargeable to Central Excise duty under 7308.40 of the Central Excise Tariff as well as agricultural implements covered under heading 84.32 at nil rate of duty. They avail the Cenvat credit of duty paid on the inputs and service tax paid on the inputs services. A show cause notice dated 10-4-07 was issued to the Appellant seeking recovery of an amount of Rs. 3,26,678/- along with interest under Rule 11A(1) of Central Excise 1944 read with Rule 6(2) of Cenvat Credit Rules, 2004 and imposition of penalty on them under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, on the ground that since they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts pleaded that during the period of dispute i.e. from April, 2001 to March. 2004, the entire production of finished product including agricultural implements had been exported out of India; that in view of this, in terms of provisions of sub rule 6(v) of Rule 6 of the Cenvat Credit Rules, the provisions of sub-rule (1), (2), (3) & (4) of Rule 6 were not applicable and as such no amount as per the provisions of Rule 6(3) was required to be paid; that the appellants during the period of dispute was regularly filing monthly ER I returns in which the value of the clearances of agriculture implements attracting rate of duty was being shown, but no objection was raised by the Department; that in view of this, the Appellant cannot be accused of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Department only when the Central Excise records of the Appellants were checked by the Central Excise authorities in the course of audit, the extended period under provisions of Section 11A(1) has been rightly imposed and penalty under Section 11AC has been rightly-imposed; and that in view of this, this is not a case for waiver from the requirement of pre-deposit of duty demand, interest and penalty. 5. We have carefully considered the submissions from both sides and perused the records. There is no dispute about the fact that common cenvatable inputs and input services have been used in or in relation to the manufacture of dutiable finished products as well as the finished products with nil rate of duty which are covered by the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout payment of duty under Rule 19(1) one of the main condition of which is that clearances for export have to be under bond and it is such clearance for export under bond which in terms of the provisions of sub-rule (6)(v) of Rule 6 of Cenvat Credit Rules are exempt from the provisions of sub-rule (1), (2) (3) and (4) of Rule 6 of Cenvat Credit Rules. In the present case, prima facie, we find that there is nothing to indicate that the clearance of goods agricultural implements were under bond in terms of provision of Rule 19(1) of Central Excise Rules, 2002. Besides, this we also find that while the appellant had declared the nil duty clearances of Agricultural implements in the ER I returns filed by them, the fact that they were not main ..... X X X X Extracts X X X X X X X X Extracts X X X X
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