TMI Blog2009 (1) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... roduction capacity, as determined by the Commissioner, they were not eligible for Cenvat credit. The compounded levy scheme was withdrawn w.e.f. 1-4-2000 and with the withdrawal of this scheme they became eligible for input duty credit. The Central Government issued a Notification No. 29/2000-C.E., dated 31-3-2000 prescribing deemed credit @ 12% ad voleram on the value of the stock of raw material as on 1-4-2000. This deemed credit was to be taken only up to 30 April, 2000 as per Clause 6 of the notification, this notification came into force from 1-4-2000 and shall remain effective up to and inclusive of 30th day of April, 2000. The appellant vide their letter dated 1-4-2000 addressed to Assistant Commissioner declared stock of 583.865 M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot authorized to deal with any excise matter. The Directors of the Appellant company were summoned several times by the Central Excise officers but they did not turn up. It is in this background that a show cause notice was issued on 12-3-05 for demand of wrongly taken deemed Cenvat credit amounting to Rs. 4,21,114/- under Rule 57I(i)(ii) of the Central Excise Rules read with Sec. 11A along with interest on it at the applicable rate as per the provisions of Rule 57I(5) read with Section 11AB of the Central Excise Act and also for imposition of penalty on the Appellant under Rule 57-I(4) of Central Excise Rules read with Section 11AC of the Central Excise Act. The show cause notice had been issued by invoking extended period of five years. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning their Directors, that Indian Overseas Bank, from whom the Appellant had taken loan, had initiated debt recovery proceedings against the Appellant before the Debt Recovery Tribunal and as per the report of the Commissioner appointed by the Debt Recovery Tribunal for taking stock of the appellant s assets, the Commissioner in his report to the Debit Recovery Tribunal has reported the stock of approximately 600 M.T. of iron scrap lying in the factory and that in view of this, the Department s claim that their stock of scrap as on 1-4-2000 was only 70 M.T. cannot be correct. He also pleaded that the Cenvat credit demand raised by show cause notice dated 12-3-05 is time barred as there was no suppression on the part of the Appellant. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turing scrap but the same comprised of old and used iron and steel articles like cooler bodies etc. purchased from scrap dealers which obviously is non-duty paid scrap. The Appellant, in subsequent proceedings, have not cooperated with Department. Though the Appellant had informed the Jurisdictional Superintendent that one Shri Shamsher Singh would appear before the Superintendent for verification of the stock on 26-9-02 but neither he appeared on 26-9-02 and nor he appeared on the next day on 27-9-02. The verification report of the Commissioner appointed by the Debt Recovery Tribunal, which mentions the stock of 600 M.T. as on 21-7-01 is of no relevance as for the purpose of deemed credit, what was relevant was the stock of duty paid scrap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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