PYARA REXINE (P) LTD. Vs. C.C.E.

JUDGEMENT

(1.) This is an appeal against the order of the Commissioner (Appeals) No. 566/CE/CHD/REV/2007 dated 14.11.07.

(2.) None appears for the appellant inspite of notice. On earlier occasions (i.e. on 24.12.09) also none represented the appellants.

(3.) The appellant is a manufacturer of PVC cotton fabrics and they are having unit in Himachal Pradesh. They expanded their capacity by more than 25% and started availing the benefit of -CE dated 10.6.03 with effect from 1.5.04. The department held that the appellant should have reversed the credit relating to inputs in stock, inputs contained in semi -finished goods and goods lying in stock as on 30.4.2004. It is apparent that subsequent to the advice by the Department, the respondents have paid the entire credit amounting to Rs. 8,54,937/ - on 15.3.05, 20.3.05 and 24.3.05. Show cause notice was issued thereafter on 26.4.05 proposing penal action. Original authority vide order dated 26.10.06 dropped the proceedings on the show cause notice. On appeal by the Department, the Commissioner (Appeals) imposed penalty of Rs. 8,54,937/ - on the appellant under Rule 13(2) of Cenvat Credit Rules read with Section 11AC of the Central Excise Act, 1944.