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TMI Blog2018 (1) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... dent ORDER Per: Anil G. Shakkarwar Present appeal is directed against Order-in-Appeal No.163-CE/MRT-II/07 dated 27.07.2007 passed by Commissioner (Appeals), Customs, Central Excise and Service Tax, Meerut-II. 2. Brief facts of the case are that the appellant i.e. M/s Tuftwan Petrochemicals Ltd. were engaged in the manufacture of prepared adhesives and organic composite solvents falling under C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not required to do so as they did not take any credit of SED. Since the Rule 3 of Cenvat Credit Rules, 2001 provides for payment of duty applicable at the rate effective on date of removal, under cover of invoice the appellant were asked, by the department, that SED was also to be paid. The appellants took whole of the credit on SED paid on inputs, on 01.01.2002 and debited the SED amount from s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to Rs. 27,63,636/- under Section 11 A of Central Excise Act, 1944 read with Rule 57 AB (1)(b) of Central Excise Ruled. 1944 and Rule 3 (4) of Cenvat Credit Rules, 2001 read with Rule 4 of Central Excise Rules, 2001. Further the Original Authority appropriated amount of Rs. 14,33,860/- reversed in respect of months of removal and ordered recovery of balance amount. The Original Authority also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit they reversed entire credit availed and removed inputs as such and, therefore, there was no short reversal of credit availed while the inputs were removed as such. When the matter of short reversal of SED was brought to their notice by Revenue they availed Cenvat Credit of SED on 01.01.2002 which was admissible to them during the respective months from April, 2001 to December, 2001 and deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory. Therefore, debit of SED of Rs. 13,29,776/- after availing the same on 01.01.2002 has satisfied the requirement of Rule 57 AB of Central Excise Rules, 1944 and Rule 3 (4) of Cenvat Credit Rules, 2001. I, therefore, set aside the impugned Order-in-Appeal and modify the Order-in-Original to the extent of setting aside confirmation of demand of Central Excise Duty of Rs. 27,63,636/- and impositio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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