9911796707
TMI Blog2013 (9) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... d man-made fabrics falling under Chapter Nos. 52, 54 and 55 of the Central Excise Tariff Act. Prior to 7-12-2008 they were availing benefit of Notification No. 30/2004-C.E., dated 9-7-2004 in respect of their clearances to the Domestic Tariff Area (DTA) and were availing the benefit of Notification No. 29/2004-C.E., dated 9-7-2004 in respect of the export clearances paying duty @ 4% and 8% ad valorem respectively in respect of the cotton fabrics and man-made fabrics. On 7-12-2008 Notification No. 29/2004-C.E. was amended vide Notification No. 58/2008-C.E. wherein the rate of duty on cotton fabrics not containing any other textile material was reduced from 4% to 'nil' and that on man-made fabrics was reduced from 8% to 4%. Simultaneously ano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y them as duty on export clearances of processed cotton fabrics under claim for rebate towards the amount demanded in 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 7-12-2008 to 31-3-2009 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 ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted when the exempted goods are exported under the provisions of Rule 6(6)(v) of the said Rules. He further submitted 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 6-1-2009 and 6-2-2009 address ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; ........... (iii) ........... (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 to 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 se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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