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TMI Blog2010 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 2003/1-4-03 by adding the process cost in the value of under processed grey fabrics and taken the credit in terms of the Notification No. 25/03 dated 25th March, 2003. Accordingly the statement of the Director of the appellant company was reported wherein he stated that the total cost of under processed fabrics was taken over into consideration for calculating the total declared value of such goods in the total value of under processed fabrics, value of grey fabrics by not deducting cash discount, processing charges including the colours and chemicals, transportation charges and profit and margin were taken into consideration. He also submitted that bifurcation was not required to be submitted by the appellant, hence they have shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (3) of the table below, on inputs lying in stock or in process or on inputs contained in finished goods lying in stock, as specified in the corresponding entry in column (2) of the said Table, namely :- TABLE S. No Description Amount of credit (1) (2) (3) 1 Input lying in stock or in process, namely,- (a) Texturised yarn lying in stock in a composite mill; Rs. 18 per Kg of texturised yarn multiplied by quantity in Kg of such texturised yarn (b) Yarn other than (a) above Deemed value multiplied by the rate of duty on such yarn (c) Fabrics (unprocessed or processed) Deemed value multiplied by the rate of duty on such fabrics 2 Finished goods lying in stock, namely, - (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1 clause (c) the fabrics unprocessed or processed the amount of credit is to be taken on deemed value multiplied by the rate of duty on such fabrics. As per Notification, the appellant is entitled to take the credit on inputs only. He further submitted that in the case of R.I. Gandhi v. Commissioner of Central Excise, Surat reported in 2006 (205) E.L.T. 177 (Tri. - Bombay), has although it is a prima facie view, but the Tribunal has observed that the appellant has taken the credit on the higher value in compliance to Notification No. 35/03 and asked the appellants to make deposit of the full amount of duty. 4. Heard both sides. 5. On careful examination of the submissions made by both sides, the facts and circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod is invokable in this case. With regard to the penalty under Section 11AC, when there is suppression of facts the penalty equivalent to duty is leviable on the appellants. But I find that the lower authorities have not given the option to the appellant to pay 25% of the duty confirmed as penalty as per the proviso (1) & (2) of Section 11AC of the Central Excise Act 1944. I give the option to pay 25% duty confirmed as penalty within 30 days of the issue of this order as held by the Hon'ble Delhi High Court in the case of K.P. Pouches [2008 (228) E.L.T. 31 (Del.)]. Failing which the appellant shall be liable to pay 100% duty as penalty. With these observations, appeal is dismissed.
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