MEGHA TEX PRINTS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant challenges the order of the Commissioner (Appeals) made on 28 -6 -2006 upholding the order -in -original by which the Deputy Commissioner disallowed Cenvat credit of Rs. 3,48,154/ - and ordered its recovery from the appellant with interest while imposing penalty of Rs. 10,000/ - only.

(2.) THE appellant was engaged in the manufacture of M.M. Fabrics falling under Chapter 55 of the Schedule to the Central Excise Tariff Act. According to the Revenue, they had irregularly availed Cenvat credit of the aforesaid amount in April, 2003. During the course of audit, it was observed that the as -sessee had declared excess value of goods by adding the process charges, cost of colour and chemicals without having any cenvatable documents, transport charges, discount and profit margins, etc. in the stock declared under Rule 9 -A of the Cenvat Credit Rules, 2002 and had thus taken excess one time credit. The lower authorities, after considering the provisions of Rule 9A of the said Rules, came to the conclusion that one time Cenvat credit was admissible on value of inputs contained in the goods in process and that the credit on the process charges included in the declared value of fabrics does not appear to be admissible.

(3.) THE learned Counsel appearing for the appellant contended that from the Notification No. 35/2003, dated 10 -4 -2003 and No. 25/2003, dated 25 -3 -2003, the intention of the Legislature was clear to the effect that the value of the goods found in stock required to be declared thereunder would include the processing costs.