CCE Vs. GODVARI DRUGS LTD.

JUDGEMENT

(1.) HEARD both sides.

(2.) PROCEEDINGS were initiated in respect of semi -finished processed inputs sent out for job work but not received back nor used in the manufacture of final excisable goods. Amount demanded was Rs. 84,552/ - which was already paid vide RG -23A (II) vide entry No. 165/13 dated 23.6.2001. Duty amounting to Rs. 30,350/ - was demanded on account of clearance of coal ash and Rs. 4,24,415/ - was demanded on account of reprocessing of rejected goods/modvat inputs received under Rule 173H and subsequently without payment of duty since the process under taken is amounting to manufacture in view of Section 2(f) of the Central Excise Act, 1944 read with chapter note 11 of chapter 29. Penalty was proposed under Rules 75 -I, 173Q and Section 11AC. The learned Commissioner(Appeals) did not uphold the demand of Rs. 84,552/ - as he found that the credit raised by the appellants on such inputs had been reversed much before the visit of the officers and the appellants were made to debit the same amount again on 26.6.2001 and such debits made second time were not upheld.

(3.) AS regards duty on coal ash the learned Commissioner (Appeals) relied upon the decision of the Supreme Court in the case of Union of India v. Ahmedabad Electricity Co. Ltd. and did not uphold the demand of Rs. 30,552/ -.