NOBLE DRUGS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AS per facts on records, the appellants are engaged in the manufacture of P.P. Medicines classifiable under Chapter 30 of the Central Excise Tariff Act, 1985 and was availing the facility of payment of duty on monthly basis in terms of the provisions of Rule 8 of the Central Excise Rules, 2001, During the period August, November and December, 2001, the appellants defaulted on payment of duty on due date and, as such, Deputy Commissioner vide his order dated 10 -2 -2002 withdrew the said facility as per Rule 8 and directed the appellants to pay duly on consignment basis through PLA for a period of two months from the date of receipt of the order.

(2.) IN terms of the above order passed by the Deputy Commissioner, the appellants cleared the goods by paying duty on consignment basis. However, instead of debiting the same through account current, they made the payment through Cenvat account. Accordingly, they were issued two show cause notices dated 16 -4 -2003 and 9 -7 -2003 proposing confirmation of demands of duty and imposition of penalty. The said show cause notices culminated into an order passed by the Assistant Commissioner confirming duties of Rs. 7,29,478/ - and Rs. 7,39,000/ - and imposing equivalent amount of personal penalties, along with confirmation of interest. On appeal against the above order, the appellate authority confirmed the demands of duty and recovery of interest. However, he permitted the appellants to take re -credit of Cenvat credit already debited by them from their Cenvat account. Penalty was reduced to Rs. 8,35,000/ -. The said order of the appellate authority is impugned before us.

(3.) WE have heard Shri M.H. Patil, ld. Advocate appearing for the appellants along with Ms. Aparna, Advocate and Shri S.S. Bhagat, ld. SDR for the Revenue.