FIROZABAD GLASS SHELL INDUSTRIES Vs. CC, NEW DELHI

JUDGEMENT

(1.) Archana Wadhwa, Member (J)

(2.) AFTER hearing both the sides, I find that the appellant is a unit engaged in the production of export of "Glass Refills Silver Coated for Vacuum Flask" falling under Chapter 70 of the Central Excise Tariff Act. It is seen that the appellant availed the Cenvat credit of duty paid on the inputs, received by them from one M/s Om Glass Work, Firozabad, during the period December 2006 to June 2008. However, while making exports during the said period, under the claim of duty drawback, the declaration made by them in their ARE -I was to the effect that the appellant has not availed any Cenvat credit under the Cenvat Credit Rules 2004. The said mis -declaration made by the appellant was detected by the Revenue subsequently by the Revenue. Correspondence was undertaken with the appellant and the fact that the appellant had availed the credit was accepted by them. Accordingly, the drawback claimed by them to the extent of Rs.11,56,277/ - was not available to them. The appellant paid back the drawback so received by them in violation of the provisions, along with payment of interest.

(3.) AFTER hearing both the sides duly represented by Shri Bipin Garg, ld. Advocate for the appellant and Shri B. Sharma, ld. DR for the Revenue, I find that the fact of availment of Cenvat credit and the fact of making wrong declaration in the ARE -I has not been disputed by the appellant. The Commissioner has observed that inasmuch as the appellant has intentionally mis -declared the facts and have claimed the excess drawback, the goods in question are liable for confiscation under Section 113(h)(ii) of the Customs Act, 1962. As the same are not physically available, having been exported, the appellant is liable to penalty under Section 114. Accordingly, he imposed penalty of Rs. 3 lakhs.