TMI Blog2006 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... h are excisable commodity. After investigations, the Revenue proceeded against the appellants on the ground that they had willfully suppressed the fact of production and clearance of exempted final products by using Cenvat credit availed on the inputs with an intention to wrongly avail the Cenvat credit and evade payment of 8% amount at the time of clearance of such exempted final products as specified in the Cenvat Credit Rules, 2002. A demand of Rs.4,29,89,639/- was made under Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11A(1) of the Central Excise Act, 1944. Interest in terms of Rule 12 of the Central Excise Rules, 2002 read with Section 11AB of the Central Excise Act, 1944 was demanded. Penalty under Rule 13(2) of the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct does not affect Proforma Credit Scheme. By-product does not enter the equation between input and final product. Credit not derivable when exempt waste or by product emerges. (iii) M.K. Agrotech v. CCE, Order-in-Appeal No. 303/2006 dated 17-10- 2006 wherein it has been held that Provision of Rule 6 for an exempted product will be attracted only if it is a final product and not a by-product waste or refuse even if it attracts classification under Tariff and is regularly cleared and sold based on the CESTAT, Bangalore Final Order No. 1036/2006 [2006 (205) E.L.T. 896 (Tribunal)J in the case of M/s. JSW Steels Ltd. and Final Orders No. 1266 1267/2006 in the case of M/s. Kalyani Ferrous Industries Ltd. 5. The learned JDR urged the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Explanation-II under Rule 6 (3) of Cenvat Credit Rules makes it amply clear that if the manufacturer fails to pay the amount equal to 8% of the price, the same is recoverable under the provision of Rule 12 of Cenvat Credit Rules. (iv) The case laws relied upon by the appellants have no relevance to the present case as the same pertain to the period prior to introduction of Rule 6(3)(b) of Cenvat Credit Rules, 2002. The Board has vide Circular No. 654/45/2002-CX dated 19-8-2002 clarified that Rule 6 of Cenvat Credit Rules is unambiguous and clear to the effect that when separate accounts are not maintained, 8% of the price is to be paid. 6. We have gone through the records of the case carefully. The appellant in the course of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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