BISALPUR KISAN SAHKARI CHINI Vs. CCE

JUDGEMENT

(1.) THE relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of sugar and molasses falling under Heading No. 1701 and 1703 of the Central Excise Tariff Act, 1985. It has been alleged that on perusal of the Annual Report for the year 2001 -2002, it is noticed that during the financial year 2000 -2001 and 2001 -2002, the appellants sold scraps. The appellants explained by letter dated 16.3.2004 that during the said period they cleared scrap of M.S. used ball bearing/used choke/used Drums/C.I. powder/Nickel Screen etc. but Modvat credit was availed on Nickel Screen and bearing only. It has been alleged that the appellants contravened the provisions of Rule 3(4) of the Cenvat Credit Rules, 2001 and, therefore, it was proposed to demand the duty, penalty alongwith interest. The adjudicating authority confirmed the demand of duty and imposed penalty of equal amount along with interest, which has been upheld by the Commissioner (Appeals).

(2.) LD . Counsel on behalf of the appellants submits that this issue is squarely covered by the decision of the Tribunal in the case of CCE, Jaipur -II v. Birla Corporation Ltd. and Ors. Reported in 2005 (67) RLT 51 (CESTAT -Delhi)

(3.) LD . DR reiterates the findings of the Commissioner (Appeals).