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TMI Blog2011 (8) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 they were availing benefit of Notification No. 30/2004-CE dated 09/07/2004 in respect of their clearances to the Domestic Tariff Area (DTA) and were availing the benefit of Notification No. 29/2004-CE dated 09/07/2004 in respect of the export clearances paying duty @ 4% and 8% ad valorem respectively in respect of the cotton fabrics and manmade fabrics. On 07/12/2008 Notification No. 29/2004-CE was amended vide Notification No. 58/2008 wherein the rate of duty on cotton fabrics not containing any other textile material was reduced from 4% to 'nil' and that on manmade fabrics was reduced from 8% to 4%. Simultaneously another Notification No. 59/2008-CE dated 07/12/2008 was issued prescribing a concessional rate of duty of 4% on cot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the show cause notice. The case was adjudicated by the impugned order wherein the adjudicating authority confirmed the demand for an amount of Rs.3,26,99,951/- in respect of processed cotton fabrics cleared for export during the period from 07/12/2008 to 31/03/2009 and ordered its recovery under Section 11A(1) of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. He also confirmed the demand for interest on the said amount under Section 11AB of the said Act. He further imposed a penalty of Rs.3,26,99,951/- on the appellant under the provisions of Rule 15(1) of the Cenvat Credit Rules and also appropriated an amount of Rs.31,64,578/- paid by the appellant as duty on export clearances of processed cotton fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that during the material period, in view of the existence of two rates of duty, they had approached the jurisdictional Range Superintendent and jurisdictional Assistant Commissioner seeking clarification as to whether they were required to pay duty @ 4% on cotton fabrics or not. The departmental authorities advised them that they can avail full exemption if they are not availing CENVAT credit on the inputs and in case they want to avail CENVAT on inputs, then they may discharge duty liability @ 4% on cotton fabrics. In respect of their above claim, they have submitted copies of two letters dated 06/01/2009 and 06/02/2009 addressed to the jurisdictional Assistant Commissioner. In the light of the above submissions, they pray for complete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ........... (iv) ............ (v) cleared for export under bond in terms of provisions of the Central Excise Rules 2002; or (vi) ......... The demand in the instant case has been made under Rule 6(3) which provides that: "manufacturer of goods or provider of output service opting not to maintain separate accounts shall follow either of the following options, as applicable to him, namely:- (i) the manufacturer of goods shall pay an amount equal ten per cent of value of the exempted goods and the provider of output service shall pay an amount equal to eight per cent of value of the exempted service; or (ii) .............. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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