COMMISSIONER OF C. EX., SURAT Vs. ALKA FASHION

JUDGEMENT

(1.) BEING aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. I have heard Shri D.S. Negi, ld. SDR appearing for the Revenue. Nobody appeared for the respondents.

(2.) AS per facts on record, respondents are engaged in the manufacture of garments falling under Chapter 62. The Unit had procured 22,17,549.40 Mts. of raw material i.e. MMF(P) for manufacturing of their final product during the period from June, 2003 to January, 2004 and availed the Cenvat credit to the tune of Rs. 94,35,802/ -. It was noticed that the unit had cleared 3,12,400.50 Mts. of the above raw material valued at Rs. 1,24,86,017/ - by debiting duty of Rs. 12,48,601.70 @ 10% of value, instead of reversing the credit of duty availed originally as provided for under Rule 3(4) of the Cenvat Credit Rules, 2002. It was further noticed that the unit failed to provide the details of actual amount of Cenvat Credit availed on the raw materials, cleared as such. By applying FIFO method of calculation, a show cause notice No. V(Ch.62)3 -298/SRT -V/04 -05/II, dated 8 -2 -2005 was issued.

(3.) THE said show cause notice was adjudicated by the Dy. Commissioner of Central Excise and Customs, Div. -V, Surat -I vide OIO No. SRT -V/Adji. -17/2005 -D dated 17 -6 -2005 passing the following order in respect of the unit,