TMI Blog2008 (1) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... This application has been filed by M/s. Chemfab Alkalis Ltd., Pondicherry (CAL). CAL manufactures Caustic Soda using Sodium Carbonate and Sodium Hydroxide. In the impugned order, the Commissioner (Appeals) has sustained a demand of Rs. 4,61,755/- under Section 11A of the Central Excise Act (the Act), the interest thereon and equal amount of penalty under Section 11AC of the Act. Demand and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars of removal of brine solution to their sister concern were periodically intimated to the department in the monthly returns. Therefore, extended period under Section 11A(1) proviso could not be validly invoked in the instant case. He relies on the decision of the Apex Court in CCE v. Tata Iron Steel Co. Ltd., reported in 2004 (165) E.L.T. 386 (S.C.), in support of his argument that everythin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not marketable is not correct. The plea of limitation on the basis that the relevant information was furnished periodically in their monthly returns is being made for the first time and there is no evidence of such submission in the records. Therefore this plea is not sustainable. 4. I have considered the case records and the submissions made by both sides. The brine solution that arises in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff Act, 1985. Therefore, the credit of duty paid on all the raw materials that are received and used in the process of production in the assessee s factory will be admissible only if they get consumed in the manufacture of dutiable final products. In the instant case, obviously, part of the brine solution is cleared without payment of duty to its sister concern. The assessee has not maintaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellants shall make a pre-deposit of Rs. 1.5 lakhs within four weeks from today in terms of Section 35F of the Central Excise Act, 1944. The appellants shall report compliance on 7-3-2008. On such compliance, there shall be waiver of pre-deposit and stay of recovery of the balance dues as per the impugned order. (Order dictated and pronounced in the open Court) - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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