HETERO DRUGS LTD. Vs. COMMISSIONER OF CUSTOMS AND

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Appeal No. 13/2005(H -IV)CE dated 31.01.2005 passed by the Commissioner of Customs and Central Excise (Appeals -II) Hyderabad.

(2.) THE appellants are manufacturers of drugs. Revenue proceeded against the appellants on the ground that they had taken credit on certain inputs, which are used exclusively in the manufacture of exempted goods. The amount involved is Rs. 30,653/ - for the period from 6.5.2000 to 23.09.2003. The Original Authority demanded the above mentioned sum being the credit wrongly taken for the above mentioned period. Further, he imposed a penalty equivalent to the credit wrongly taken in terms of Rule 173Q(bb) and Rule 13(2) of Cenvat Credit Rules, 2001 and 2002 read with Section 11AC of the Central Excise Act, 1944. Interest was also demanded under Rule 12 of Cenvat Credit Rules, 2001 and 2002 read with Section 11AB of the Central Excise Act, 1944. The appellants approached the Commissioner(Appeals). The Commissioner (Appeals) upheld the order of the Original Authority in the impugned order. However, he reduced the penalty to Rs. 15,000/ - The appellants are strongly aggrieved over the impugned order. Hence, they have come before this Tribunal for relief.

(3.) SHRI Harish, the learned Advocate, appeared on behalf of the appellants and Shri Anil Kumar, the learned JDR, for the Revenue.